German rail drivers propose mediator in pay dispute

BERLIN, Aug 9 (Reuters) German train drivers have sent the strongest signal yet they could resume talks with rail operator Deutsche Bahn in a wage dispute which brought local trains in Berlin and Hamburg to a halt for two hours today.

The GDL train drivers' union, forced by a court yesterday to suspend plans to stage nationwide strikes, took a significant step by proposing a former politician as a mediator.

Earlier, several hundred drivers held two-hour strikes on local rail services in Germany's two biggest cities, causing disruption to thousands of commuters as trains stood empty on the tracks in deserted stations.

The union yeterday put on hold plans to stage the first nationwide rail strikes in 15 years after Deutsche Bahn succeeded in getting a court injunction to stop the action.

The drivers had planned to halt freight services and to later extend the stoppages to passenger services at the height of the summer holiday season.

The strikes could have hit five million people a day and companies and economists had warned a prolonged strike could dent growth in Europe's biggest economy.

The court ruling, condemned by other unions, did not affect Berlin and Hamburg local trains.

Deutsche Bahn criticised today's walkouts and said the only way forward was through negotiation.

''We must talk because we should not let customers suffer through this strike,'' said personnel chief Margret Suckale.

GDL chief Manfred Schell said he would announce no further strikes and suggested a senior former conservative Christian Democrat, Heiner Geissler, as a mediator in the dispute. He has experience in arbitration.

JUST POSTURING? In the last few days both sides have said they could be willing to talk through a mediator but there are few signs that either side is ready to make substantive compromises.

''We will return to the negotiating table if we are made a realistic offer,'' Schell told German TV.

The 34,000-member rebel drivers' union wants a pay rise of up to 31 per cent. It is seeking a separate deal from that agreed between Deutsche Bahn and 134,000 members of two larger rail workers' unions who have accepted a 4.5 per cent increase.

The union says its drivers are underpaid given the high level of responsibility and compared with their counterparts in other European countries.

A Forsa poll conducted at the beginning of this week showed 56 percent of Germans think the strikes are justified, but that may change if people experience delays.

''I support the strikes but I fear they won't achieve their goals,'' said Frank Otto, 42, who is unemployed.

The strike comes at a crucial time for Deutsche Bahn. The government has announced plans to privatise the company by 2009 and Chief Executive Hartmut Mehdorn's reputation is on the line.

REUTERS GL BST1900