German Newspaper: Union Plans Strikes Next week

BERLIN, March 18 Reuters issued a story that said that a German newspaper reported on Monday that the powerful IG Metall union is planning to stage warning strikes starting next Monday to back their claims for a 6.5 percent wage rise for its 2.8 million members.

The Handelsblatt business daily quoted sources in the union saying it would prepare to call workers to a general strike ballot at the end of April if no deal is reached by then.

On Friday the union rejected a two-percent pay rise offer from employers.

The newspaper said full-scale strikes could be called for early May if there is no settlement by then. Previously it was expected that warning strikes would not be called before the Easter holidays that begin on March 29.

Warning strikes tend to take the form of one-day stoppages and the downing of tools for several hours.

The employers two percent pay rise offer ``is completely unacceptable,'' IG Metall deputy chairman Juergen Peters was quoted telling Handelsblatt.

Gesamtmetall, which represents firms such as car makers DaimlerChrysler AG (DCXGn.DE) and electronics giant Siemens AG (SIEGn.DE), says slow economic growth has hit profits.

IG Metall has already warned it would not hesitate to strike after March 28, which marks the end of the time in which unions are not legally allowed to stage industrial action.

After years of moderate deals, unions want more money because of higher inflation and increased productivity.

IG Metall and Gesamtmetall meet for pay talks every one or two years and the talks often turn into marathon events, with a deal usually emerging midway between employer and union demands.

The last wage talks in 2000 ended surprisingly quickly with a moderate pay rise.