New collective agreements concluded at Deutsche Bahn

In March and May 1999, a number of new collective agreements were agreed at the German railway company Deutsche Bahn (DB). Concern-level agreements signed in March cover a selected number of enterprises within DB and represent a first at the company. The May agreement increases pay by 3.1% from 1 September 1999 for all DB employees.

On 18 March 1999, the German railway company Deutsche Bahn (DB) concluded two concern-level collective agreements with the GdED (Gewerkschaft der Eisenbahner Deutschlands) railworkers' trade union and the TGM bargaining cartel, which consists of the engine drivers' trade union (Gewerkschaft Deutscher Lokomotivführer, GDL) and the transport workers' trade union GDBA. Both agreements come into force on 1 June 1999 and, innovatively, cover selected enterprises belonging to DB, including those enterprises which become independent as of 1 June 1999 under the second stage of the current reform of German railways. The concern-level framework agreement on working conditions (Konzernrahmentarifvertrag) covers 30 enterprises, while the concern-level pay agreement (Konzernentgelttarifvertrag) covers 10 enterprises.

The framework agreement includes provisions on employee liability, the crediting of periods of service related to collectively agreed entitlements, social facilities and housing assistance. To enable employees to be transferred voluntarily between enterprises, provisions have been agreed on the continuation of agreed restrictions on dismissals and on company pension schemes. The pay agreement includes provisions that establish a uniform basic pay system for all enterprises within DB. Furthermore, the parties agreed further negotiations on the modification of pay structures for engine drivers.

On 4 May 1999, after a series of warning strikes, GdED and DB reached a new collective agreement for the company's 155,000 employees. The deal includes:

  • a lump-sum payment of DEM 320 in respect of the period from May to August 1999;
  • a pay increase of 3.1% from 1 September 1999;
  • a 10% increase in allowances for difficult working conditions from 1 September 1999; and
  • the continuation of the current annual bonus of a full month's pay.

The agreement is valid from 1 May 1999 to 31 August 2000.

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