German railways confident of deal with rebel union

Deutsche Bahn said on Thursday it was confident of reaching a pay deal with a rebel train drivers union that rejected a pact signed by other unions this week after a series of crippling warning strikes.
Hartmut Mehdorn, the rail operator's chief executive, told a group of journalists on Thursday he would never accept a "two-class system" by giving drivers a superior pay package to other staff but said there was room for movement in other areas.
"We're going into the talks to resolve the problem," Mehdorn said of negotiations in Frankfurt on Friday with the GDL union that represents 20,000 drivers.
The warning strikes lasting about four hours cost more than 10 million euros ($13.8 million) per day."We won't accept a two-class system," Mehdorn said. "But there are many areas we can talk about. We see possibilities where we can move for a constructive agreement. I assume that we will be able to reach an agreement."
Even though Deutsche Bahn agreed to a pay deal with two larger Transnet and GDBA rail unions on Monday, the GDL union staged strikes on Tuesday before aborting the walkouts two hours later after a court injunction was issued.
Deutsche Bahn called the GDL warning strikes illegal. The union said they will not stage any further strikes before the Friday wage talks with Deutsche Bahn leaders. Mehdorn conceded the union had showed how powerful it is.
"They proved they could cripple us," Mehdorn said. "The distribution of weapons was unfair. It was lopsided for the union. All I can say is 'You proved you're strong. We're impressed'. Everyone can see we've moved."
He hoped the Friday talks would lead to a deal this weekend. The GDL train drivers union wants a separate deal and said it would not agree to a 4.5 percent pay increase that two bigger unions - Transnet and GDBA - accepted on Monday. The GDL is demanding pay rises of up to 31 percent.
The Transnet and GDBA unions represent 134,000 workers. Rail strikes are rare in Germany, with one of the world's most efficient rail networks. The 4.5 percent pay rise agreed on Monday was one of the highest pay settlements in Germany this year. The deal includes a one-off 600 euro payment for the second half of 2007 and a 4.5 percent raise in January. The agreement runs for 19 months.