Frankfurt: Germany's train drivers' union GDL on Friday announced further strike action after the breakdown of talks with national rail operator Deutsche Bahn.
The two sides have been trying to agree on a deal on working hours, with GDL wanting hours cut from 38 to 35 per week without affecting pay.
Deutsche Bahn said the cost of the plan would be too high. The company said the current skilled labour shortages that Germany is facing would make it difficult to find the additional staff needed.
GDL is also looking for a pay hike of €555 ($606) per month and an inflation compensation bonus for its members.
Deutsche Bahn has so far offered an 11% pay hike over 32 months and an inflation bonus.
'No compromise' found
GDL boss Claus Weselsky described the second round of negotiations as a failure as no compromise could be found with Deutsche Bahn executives. But he did not give a date for the walkouts.
The union is currently balloting members about whether to call indefinite strikes to up the pressure on the company.
The measure will need 75% approval by members and the result is expected at the end of next month.
Large parts of Germany's rail network were brought to a standstill last week due to a 20-hour warning strike by GDL members.
Some 80% of long-distance rail services had to be cancelled and regional services were also badly affected.
Deutsche Bahn's HR director Martin Seiler said the GDL had rejected a request for a so-called three-week Christmas truce, which would halt any strikes during the holiday season.
"We specifically suggested to the GDL that between December 15th and January 7th, we'll have a Christmas truce," said Seiler, adding that the union was not in favour.