Deutsche Bahn strikes on hold as wage talks offer compromise

BERLIN/FRANKFURT (Reuters) - Negotiators in a wage dispute between Germany's Deutsche Bahn and its rail workers proposed a compromise deal on Wednesday to try to end a months-long wage dispute and ward off further nationwide train strikes in Europe's largest economy.

In a possible sign the dispute is nearing an end, both the rail company and the EVG union said they want to recommend their committees accept the proposal.

It will be put to some 180,000 railway workers in a vote, the result of which should be made public on Aug. 28. The union has ruled out any further strike action in the interim.

Under the proposal, wages at Deutsche Bahn would increase by at least 410 euros ($453.54) a month. In addition, there would be a tax-free inflation premium of 2,850 euros in October and the terms of agreement be valid for 25 months.

"Both sides will have to swallow toads in accepting the compromise," said one of the mediators, former interior minister Thomas de Maiziere, in Potsdam. "It's in the nature of compromise."

Discussions also centred around hiring employees, increasing part-time work and offering workers beyond retirement age the chance to continue employment.

The proposal is the result of ten days of negotiations between representatives for the EVG union and the national rail operator.

EVG-organised strikes have caused widespread disruption on German railways this year, including nationwide action in April that paralysed much of the network.

($1 = 0.9040 euros)

(Reporting by Emma-Victoria Farr and Holger Hansen, Writing by Rachel More, Editing by Barbara Lewis)