German rail drivers, operator agree on mediation

BERLIN, Aug 9 (Reuters) German train drivers and rail operator Deutsche Bahn today agreed to appoint mediators to help resolve a wage dispute which earlier brought some local train services to a halt.

The GDL train drivers' union, which was forced by a court yesterday to suspend plans to stage Germany's first nationwide strikes in 15 years, said it would call no further industrial action while mediation was going on.

The move offers commuters some hope that the two sides may be willing to settle the dispute, which had threatened to affect 5 million people a day through strikes and could slow the growth of Europe's biggest economy.

GDL wants a much bigger pay rise than the 4.5 per cent increase already accepted by two bigger rail unions.

''This is really a very, very decisive step,'' said Deutsche Bahn personnel chief Margret Suckale, adding that the consultations should start as soon as possible.

Several hundred train drivers disrupted local commuter travel for two hours in Germany's two biggest cities earlier in the day as yesterday's court injunction did not apply to Berlin and Hamburg local trains.

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

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

In the last few days both sides have said they might be willing to talk through a mediator but it is unclear if either side is ready to make substantive compromises.

GDL chief Manfred Schell said earlier he would return to the negotiating table if he was made a realistic offer.

''This is a first, sensible step,'' said Transport Minister Wolfgang Tiefensee, who has urged both sides to compromise. ''Now things depend on finding a solution and avoiding further escalation.'' A Forsa poll conducted at the beginning of this week showed 56 per cent of Germans think the strikes are justified, but that could change if people experience delays.

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.

Both mediators, Kurt Biedenkopf and Heiner Geissler, are former conservative politicians with experience of arbitration.

REUTERS AE BST2318