German train drivers' union GDL and rail operator Deutsche Bahn moved closer to a deal on Sunday, a source close to the union said, raising hopes that a strike planned for Monday would be called off. "If it goes well, we will call off the strike," the source said, adding that the talks were not yet over.
Deutsche Bahn and GDL officials have said they would make a statement to the press at around 1545 GMT. GDL had threatened strikes from early on Monday, escalating a months-long wage dispute with Deutsche Bahn.
Even if the strike was called off, rail operator Deutsche Bahn has said train traffic might be disrupted on Monday because it would take time to adjust to a no-strike situation.
Germany is facing a series of labour disputes. A wage conflict at Berlin's local transport operator BVG has paralysed bus, tram and underground services in the capital since last Wednesday.
German rubbish collectors, nursery workers and other public sector employees could also stage new strikes, after talks between the government and service sector trade union Verdi ended on Friday without a wage deal for some 2 million federal and local government staff and headed for arbitration.
Separately, workers at postal delivery firm Deutsche Post could also go on strike from April, Verdi has said. Economists and business lobbies have voiced concern that a series of high wage deals in Europe's largest economy risked driving up inflation. This year has already seen a 5.2 percent pay rise for German steel workers, their biggest in 16 years. The head of Germany's BDA employers association Dieter Hundt said excessive wage deals would threaten jobs.
"If Verdi and GDL get down to business, they are threatening the current positive development of the economy and of the labour market," Hundt told Bild am Sonntag newspaper.
"Continued strikes could lead to a situation, where the number of unemployed will be decreasing by less than the expected 300,000 to 400,000 this year," he said. In January, Deutsche Bahn and GDL ended months of wage negotiations and strikes with a deal that gave the union's 34,000 drivers an 8 percent pay increase from March and another 3 percent rise from September. But they are still haggling over a so-called basic wage contract, which would set out how wage deals Deutsche Bahn had agreed with other unions fitted in with the GDL accord.
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