Frankfurt/Main - Agreement was reached late Saturday in negotiations over pay and other issues for 142,000 employees of Deutsche Bahn, according Norbert Hansen, a top personnel official at German rail.
The agreement followed a near 40-hour marathon negotiation session in Frankfurt and headed off threats of a looming strike.
The compromise calls for pay increases of 2.5 per cent as of Sunday and a second increase of 2 per cent on January 1, 2010. In addition, a one-time payment of 500 euros
(640 dollars) in December was made as part of the 18-month contract.
Panels on both the union side as well as German rail must approve the deal, but that is likely a formality.