Berlin - Talks between German rail operator Deutsche Bahn and the GDL train drivers' union on pay and negotiation rights collapsed in acrimony on Monday, raising the threat of further strikes that could damage Europe's biggest economy.
Ulrich Weber, head of personnel at Deutsche Bahn, criticised the union for being an "unreliable negotiating partner" after it unexpectedly broke off talks just when it appeared that an agreement was within reach.
The GDL union, which represents just 20 000 of the railways' 196 000 workers, said that state-owned Deutsche Bahn provoked the crisis by refusing to grant it the right to negotiate on behalf of 17 000 train stewards.
It said more strikes were likely but did not say when, adding notice would be given in advance.
Earlier on Monday, Bild newspaper reported that GDL, which seeks a 5% pay rise for its train drivers and a shortened work week of 37 hours instead of 39, is considering going out on a strike that would last for nearly four days - the longest stoppage on record to hit Deutsche Bahn.
The Cologne Institute for Economic Research (IW) estimates that a train strike longer than three days could damage the economy by up to €100m per day if companies were forced to halt their assembly lines.
In mid-October the union went out on a 60-hour strike over a weekend, halting two thirds of long-distance trains and leaving millions stranded at the beginning of holidays.
Nearly one fifth of Germany's freight traffic is transported by rail, with roughly two-thirds of that handled by Deutsche Bahn.
Strikes in Germany are rare with employers and the mostly larger unions both eager to resolve their differences at the negotiating table before it comes to actual work stoppages.
The GDL is trying to raise its influence by negotiating for other rail workers, a move that politicians have criticised and want to curb. It has also drawn the public's ire for the disruptions caused by the strikes.
The union, which hopes to attract new members with its more aggressive tactics, is also in a dispute with the much larger EVG union over who is responsible for the stewards. Deutsche Bahn says it will only negotiate with EVG over the stewards.
The BDI industry association has warned that the strikes are not just hurting companies but the entire economy.
The Deutsche Bahn strike in mid-October was followed by a two-day strike of pilots at German airline Lufthansa, causing flight disruptions for hundreds of thousands of travellers.
Companies, politicians and travellers are urging that the government introduce measures to curb the power of smaller unions like the GDL and the pilots union to prevent such widespread disruption.