Deutsche Bahn and EVG Reach Deal: No Strikes, But Is the Long-Term Agreement a Win for Workers?

After just three weeks of negotiations, Deutsche Bahn (DB) and the German Railway and Transport Union (EVG) have reached a collective agreement, avoiding the threat of disruptive strikes.

Deutsche Bahn and the EVG have finally reached a collective bargaining agreement after only three negotiation rounds—a stark contrast to previous disputes that led to widespread rail strikes back in 2024, as previously reported by RAILTARGET. The agreement, which runs until December 2027, ensures wage increases, job security, and additional benefits for shift workers, aligning with DB’s broader S3 restructuring program. DB HR Director Martin Seiler said: "This is a balanced deal that considers both sides during a difficult phase for the company. The long-term agreement gives us the planning security we need for the successful restructuring of the railway."

Tarifverhandlungen: Deutsche Bahn bietet EVG bis zu 6,6 Prozent mehr Gehalt //t.co/Huq94OlRPW #Logistik

— LOGISTIK HEUTE (@LOGISTIK_HEUTE) January 29, 2025

Key Terms of the Agreement

According to the press release from Deutsche Bahn, under the new deal, employees will receive a total wage increase of 6.5% spread across three stages, starting with a 2% increase in July 2025, followed by a 2.5% rise in July 2026, and concluding with an additional 2% pay adjustment in December 2027, which will be paid as a one-time amount rather than a permanent raise.

Shift workers will benefit from an extra 2.6% wage increase, payable annually starting in December 2026, with the option to convert part of this increase into additional time off starting in 2027. A one-time EUR 200 payment will also be made to all employees in April 2025.

In addition to salary adjustments, job security has been extended until December 31, 2027, ensuring no layoffs during this period. A new working time model has been introduced to optimize staffing levels and improve operational efficiency. However, the agreement also includes a special restructuring clause for DB Cargo, which allows for deviations from standard collective agreements if necessary to support the restructuring plan of the struggling freight division. This element of the deal has raised concerns among some workers, as it could create inconsistencies in working conditions within the company.

Why the Deal Happened So Quickly

Unlike past negotiations that dragged on for months, this agreement was reached relatively quickly, largely due to the upcoming German federal election on February 23, according to Merkur.de. Both DB and EVG wanted to secure a deal before potential political changes could impact railway funding and company structure.

Another key motivation was the need to avoid strikes, which had been a looming possibility. The last major Deutsche Bahn labor dispute with the GDL train drivers’ union in 2023 resulted in widespread service disruptions, negatively affecting passengers and logistics across Germany, which RAILTARGET previously reported about. By securing an agreement before the previous contract expires in March 2025, both sides have prevented immediate disruptions to rail services.

Additionally, Deutsche Bahn sought long-term financial planning stability, especially as it undergoes a major restructuring. The company pushed for a longer contract duration to ensure cost predictability through this period of transformation.

Was the Agreement a Good Deal for Workers?

While the wage increases and job security guarantees are clear wins for employees, the length of the contract has sparked concerns within the EVG union. Initially, EVG had demanded a 7.6% pay raise, 1.1 percentage points higher than what was agreed upon. The long 33-month contract term also means that employees will not have another opportunity to negotiate new wage increases until 2028, unless unexpected economic conditions force an earlier renegotiation.

The special provision for DB Cargo is another area of debate. By allowing deviations from collective agreements to support restructuring efforts, there are fears that job protections in that division may not be as strong as in other parts of Deutsche Bahn. Seiler defended this compromise, stating: "The agreed wage increases and job security extension were only possible because of the long contract term. Our employees do a great job every day, and it’s important to recognize their efforts, even in challenging times."

No Immediate Strikes—But Will the Truce Last?

For now, rail passengers can breathe easy—there will be no immediate strikes. The previous wage agreement, set to expire in March 2025, included a peace obligation until then, preventing labor action before negotiations concluded.

However, if economic conditions change significantly before 2027, EVG may push for mid-term adjustments, potentially sparking new disputes down the line.

Source: Deutsche Bahn; RAILTARGET; Merkur.de