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Unions Reject German Rail Wage Offer

Associated Press: 06.26.07

Unions on Tuesday rejected an offer from Germany's national railway of a 2 percent pay rise for its workers, increasing the possibility of strikes in the busy summer season.

The GDBA and Transnet union have called for raises of up to 7 percent for some 134,000 employees of Deutsche Bahn AG.

Deutsche Bahn offered a more modest 2 percent increase next January, followed by another 2 percent in July 2009, and one-time extra payments of 300 euros ($400) to cover the rest of this year.

The unions dismissed that offer in a joint statement as "mockery of the employees." They pointed to healthy earnings last year.

The two sides did not set a date for new talks. The unions noted that the current wage deal expires this weekend; after it ends, workers are no longer obliged to refrain from strike action.

Deutsche Bahn countered by pointing to a study which, it said, found that as many as 9,000 jobs would be endangered by an excessive wage increase.

Separately, a third union that represents many of Deutsche Bahn's train drivers, GDL, renewed a threat to stage strikes. The railway described that as "irresponsible."

GDL is seeking wage increases of up to 31 percent for some members.

The German government is currently preparing plans to sell up to half of Deutsche Bahn in what would be the country's last big privatization.