The two sides seem far apart

The GDL union agreed to respect a court ruling banning more stoppages until 27 August to help facilitate a settlement.

Drivers at state operator Deutsche Bahn staged brief walkouts in Berlin and Hamburg on Thursday over a pay dispute.

Deutsche Bahn obtained an injunction preventing drivers of freight and long-distance trains from striking.

Mediation efforts

The injunction, lasting until 30 September, was granted because of the potential economic damage that a prolonged strike could cause.

The union appealed against the legal judgement and a Nuremberg court on Friday approved a compromise date of 27 August before which any strike action would be illegal.

The decision to hold off on the strike is an important signal to the German economy Norbert Bensel, Deutsche Bahn

Two senior politicians from the ruling Christian Democrat Party have been appointed to head efforts to mediate a deal.

GDL is seeking a 31% pay rise for its members, arguing that they should benefit more from the recovery of the German economy.

This improvement has boosted freight and passenger traffic.

Deutsche Bahn has already agreed a much smaller deal with two other unions which will see workers receive a 4.5% rise in wages.

Deutsche Bahn welcomed the fact there would be no disruption in the immediate future.