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Germany's IG Metal Calls for Strike Over Wage Demands
Friday, 31 October 2008 09:12:18 GMT  |  DailyFX Research
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Germany is facing warning strikes, after wage talks between IG Metall and the employers’ federation broke down yesterday. Employers had offered a pay rise of 2.9%, while the union is calling for a rise of 8%. The IG Metall suggested that it may be willing to accept a longer duration for the pay deal than usual in order to take into account that the economy is slowing. It has stressed, however, that the sector is so far still in relatively good shape and has refused to back down from its initial demand. Germany is now facing warning strikes at a time when confidence has already dropped sharply and the economy is almost certainly in technical recession. High pay deals would undermine Germany's competitiveness and weigh on the labor market, while reducing the room for the ECB to maneuver in the current crisis.

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