Background information

In view of declining passenger transport figures and a decline in revenues, the federal minister for transport, German Rail (Deutsche Bahn, DB), the employer organisation AGVMove (of which the DB group and DB-related companies are the only members) and the railway and transport workers union EVG concluded a pact aimed at settling conditions for safeguarding the business continuity of Deutsche Bahn. The second trade union in the sector, the engine drivers union GdL, refused to sign the pact, demanding that DB should first revise management practices.

Content of measure

The tripartite statement contains:

• the federal minister for transport promises state subsidies for DB. Under the condition of reasonable and socially acceptable negotiations of the collective bargaining partners, the federal minister aims to get approval from the budget commission of the parliament - and from the EU Commission - to raise the threshold of DB's debt and to carry part of these debts (state aid). The state will also invest in railway infrastructure building as a a measure aimed at promoting recovery and socio-economic transformation.

The company will contribute by not paying any bonus and any additional flexible premia to its top mangers and to the top managers of its affiliates and by considering reductions in human resources and material resources including job cuts. The Pact for German Rail does not cover temporary agency workers or self-employed individuals. The trade unions pledge to complement the planned measures with collective bargaining .

Use of measure

No data on impact on employment numbers or employment conditions. On the basis of the Pact for Railway, German Railway (Deutsche Bahn) recently approached the German government to demand additional financial support for short-term work.

Contents

• Employment retention
• Pay freezes or cuts

Target groups

Workers	Businesses	Citizens
Employees in standard employment	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government Trade unions Employers' organisations Company / Companies	Employer National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Agreed (outcome) incl. social partner initiative	Agreed (outcome) incl. social partner initiative
Form	Any other form of consultation, institutionalised (as stable working groups or committees) or informal	Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Company level

Involvement

The Pact for German Rail is the outcome of an ad-hoc social partner initiative with the aim to mitigate the potential impact of the coronavirus crisis on employment with Deutsche Bahn. Relevant employers and employer organisations were involved, as was the sectoral trade union EGV. The competing trade union GdL refused to participate.

Views and reactions

The social partner organisations involved, including the sectoral trade union EVG, supported the measure. The sectoral trade union GdL rejected the measure.

Sectors and occupations

This case is not occupation-specific.

Sources

• 26 May 2020: Pact for German Rail (www.deutschebahn.com)