Union Clash Over Pay Rise Threatens Strikes in Germany's Industrial Sector

Germany's major industrial union criticized a 3.6% pay rise proposal for roughly four million workers as too inadequate, sparking challenging collective bargaining talks. Employers, including Siemens and Mercedes-Benz, face potential strikes amid concerns over industry structural crises and de-industrialization threats in Europe's largest economy.

Germany's largest industrial union has criticized a proposed 3.6% pay rise for nearly four million workers, describing it as insufficient and delayed. This sets the stage for challenging collective bargaining negotiations and potential strikes in Europe's largest economy.

The regional employers' association Nordmetall announced the pay increase to be spread over 27 months, far below the 7% rise sought by the union. Daniel Friedrich, IG Metall's chief negotiator in northern Germany, expressed skepticism about reaching a quick resolution.

Employers involved in the talks, which include major firms like Siemens, Mercedes-Benz, and BMW, may face strike action starting on October 29 if a compromise isn't reached. The union's demands are met with resistance due to existing industry challenges and the threat of de-industrialization.

(With inputs from agencies.)