German metal workers unions are demanding wage increases of seven to eight percent this year, but employers say this is out of the question and are planning to offer just 2.5%.

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According to dpa, employers in the metal working industries are considering pay increases in line with the increase in the cost of living. This has been the level of pay rise for the last ten years.


Sector wage negotiations start on 2nd October. 3.6m workers will be covered by the new wage agreement, which will replace the existing contract, which ends on 31 October.


The agreement will cover five or six core elements, of which pay rises is just one.


Ahead of the official negotiations there is disagreement over forecasts for businesses in 2009, with employers much more cautious than workers. Employers are expecting zero growth in metal and electronics industries, while unions are reckoning on five percent growth.

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