German rail operator and union reach wage agreement, averting strikes

BERLIN, Feb 27 (Reuters) - Germany's Deutsche Bahn and the GDL train drivers' union reached a wage agreement on Friday, averting strikes that had threatened to hit passenger and freight transport at a sensitive moment for the state-owned rail operator.

A GDL spokesperson confirmed the deal early on Friday, saying details would be presented later in the day. Deutsche Bahn also confirmed the breakthrough, which follows months of tense talks over pay and working conditions for around 10,000 staff covered by the union's contracts.

The GDL had pushed a 40-point catalogue of demands, including an overall wage increase of up to 8%, improved allowances, better terms for trainers and enhanced company pension bonuses.

The agreement marks an early test for new Deutsche Bahn CEO Evelyn Palla, who is seeking to hand greater responsibility to operating units as the rail group battles heavy losses and a potential breakup of its cargo division, DB Cargo.

(Reporting by Christian Kraemer, Writing by Friederike Heine; Editing by Michael Perry)