There are signs that wage negotiations in the German metal working and electronics industry are making some progress.

Martin Kannegiesser, president of the metal working employers union, told Handelsblatt: "Both sides, IG Metall as well as us, are now starting to move closer together."

Talks are scheduled for tomorrow (11 November). Unions have demanded an 8% pay rise but employers have offered just 2.1% plus bonus payments. If agreement is not reached, unions are threatening to strike.

According to the reports the parties are considering flexible measures such as the introduction of shorter working hours or adjustable working hours. The union has proposed that an agreement could last for a longer period.

Around 3.6m workers in metalworking and electronics industries are affected by the negotiations.