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A key regional branch of Germany's IG Metall union said on Wednesday it would stage temporary work stoppages from the end of next month if employers did not improve an offer of a 3 percent pay raise.
Joerg Hofmann, head of the metals and engineering union in the rich south-western state of Baden-Wuerttemberg, said there would be a short and powerful wave of warning strikes from April 28 if a better offer was not forthcoming. "The substance of the offer does not convince us in any way," Hofmann said. Baden-Wuerttemberg is home to German manufacturers including DaimlerChrysler and Heidelberger Druck and could set the tone for wage agreements across the rest of the country.
Employers' group Suedwestmetall has said its offer of a 2.5 percent increase in pay plus a one-off payment of 0.5 percent is "an extremely attractive overall package" and predicts 50,000 jobs will created if the union accepts it.
IG Metall has demanded a 6.5 percent wage rise for Germany's 3.4 million workers in the sector and negotiations are taking place in regional branches over the next few weeks.
Metals employers in the north of Germany said on Wednesday they had made a similar offer to the one in Baden-Wuerttemberg which, if it was accepted, would help secure the 150,000 jobs in the region and protect firms' competitiveness.

Copyright Reuters, 2007

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