BERLIN - German train drivers stepped up their industrial action on Thursday, paralysing a large part of passenger traffic over a wage dispute despite a new offer from Deutsche Bahn.

The strike, the third and longest in the current wage dispute, has affected freight services since Wednesday afternoon and passenger traffic from early on Thursday. The strike is due to run until Tuesday.

Trade union GdL, which held two strikes in August, is demanding a 3.2% increase for drivers in addition to a coronavirus bonus of 600 euros.

Late on Wednesday, Deutsche Bahn offered to pay a coronavirus bonus of up to 600 euros and to shorten the term of the collective agreement.

The trade union and Deutsche Bahn are expected to make statements on Thursday.

(Reporting by Kirsti Knolle Editing by Robert Birsel) ((kirsti.knolle@thomsonreuters.com;))