In the upcoming collective bargaining round, IG Metall intends to demand a wage increase of seven percent over twelve months for the approximately 3.9 million employees in the metal and electrical industry.

Training allowances should be increased by 170 euros per month, the union announced on Monday after a board meeting. In addition, a social component should take pressure off lower pay groups in the companies. "The companies have a comfortable cushion of orders, the employees have to work hard," said Nadine Boguslawski, board member for collective bargaining. The order books are full for over a month longer than normal. "Inflation has eaten up the one-off payments made by employers in the last wage agreement."

IG Metall surveyed 318,000 employees in the industry before recommending its demands. The recommendation made by the executive board is now being discussed in the union's regional bargaining districts. The final demand will be decided by the IG Metall executive board on July 9.

(Report by Christina Amann, edited by Ralf Banser. If you have any queries, please contact the editorial team at frankfurt.newsroom@thomsonreuters.com)