Mediators put forward a proposal to end a lengthy German railway pay dispute

abcnews.go.com:

Mediators have presented their proposal to end a long-running pay dispute between Germany’s main national railway operator and a major union, a two-year settlement that would head off damaging all-out strikes

BERLIN — Mediators on Wednesday presented their proposal to end a long-running pay dispute between Germany's main national railway operator and a major union, a two-year settlement that would head off damaging all-out strikes.

The EVG union agreed last month to take the dispute to arbitration after talks with state-owned operator Deutsche Bahn broke down. The union, which already staged hours-long or one-day “warning strikes,” a common tactic in German negotiations, had threatened to move on to open-ended strike action. The mediators, former government minister Thomas de Maiziere and labor lawyer Heide Pfarr, started work last week.

The pair on Wednesday presented a proposal that they said was backed by both Deutsche Bahn and EVG negotiators, but it will still need the approval of EVG members in a ballot in the coming weeks.

It centers on a pay increase of 410 euros ($453) per month in two stages as part of a deal that would be valid for 25 months. There would also be a one-off, tax-free payment in October of 2,850 euros for each employee to counter high inflation.

The government, trying to address the impact of rising prices while preventing an inflationary spiral, has been keen to promote such tax-free payments, which have featured in other wage deals in recent months.

EVG originally sought a 650-euro raise, or 12% for railway workers at higher pay grades, and for a salary agreement to be valid for 12 months rather than Deutsche Bahn’s proposed 27 months.

Pfarr said it would be “the most expensive wage