German railway Deutsche Bahn said on Saturday that it had reached a wage agreement with the EVG union following a walkout earlier this week.


Employees will get a 3.5 percent raise from July 2019 and a further 2.6 percent increase a year later. The deal also includes a bonus payment of 1,000 euros ($1,130.60).


The 29-month deal puts an immediate end to the threat of stikes for the state-owned rail company.


On Monday, German rail workers staged a four-hour stoppage that brought long-distance rail traffic to a standstill and disrupted commuter and freight trains.


The EVG union had initially demanded a 7.5 percent pay , increase for some 160,000 Deutsche Bahn employees.


($1 = 0.8845 euros)