German metalworkers kept up strikes today despite plans to return to talks with employers to resolve a bitter wage dispute.
The union wants a 6.5 per cent pay rise, a demand employers say is economically unreasonable now. Employers have countered with a 3.3 per cent pay raise plus a one-time bonus.
The powerful IG Metall union and employers are to sit down together tomorrow to try to resolve the conflict, which has threatened to hobble the German economy as it emerges from a recession and damage Social Democrat Chancellor Mr Gerhard Schroeder's chances of re-election in September.
IG Metall - which represents 3.6 million employees in the metalworking, electrical and engineering sectors - said it had no plans to halt the walkouts until a deal had been struck.
Analysts say the union is likely to settle for about 4 per cent but warns the longer the strikes continue, the greater the chance they will put the economic rebound in danger.
AFP