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

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. 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 settlement in the history of Deutsche Bahn.” But she said that “an open-ended strike with an uncertain outcome be prevented, along with reputational damage to both Deutsche Bahn and EVG.” The union’s chief negotiator, Kristian Loroch, said the proposal would mean that “almost all members will benefit from a wage rise in the double-digit percentage area.” During the dispute, Deutsche Bahn accused EVG of trying to score points in a bitter, long-held rivalry with the other main railway workers’ union — and the settlement, if approved, may only be the prelude to the next dispute.