Will German Industrial Workers and Employers Manage Reach an Agreement?

Forex News

After a series of 24-hour strikes about pay and working hours last week, industrial workers and employers in Germany plan to resume negotiations. Against the backdrop of the strongest economic growth in six years and a record low unemployment, IG Metall demands an 8% wage increase over 27 months for 3.9 million engineers and metallurgy workers in the country with Europe's largest economy. It is expected, that about 260 companies will join the strike by Friday, including automakers Mercedes-Benz Daimler and Porsche.

The DIW Economic Institute estimated that strikes could cost companies a total of 62 million euros per day, provided that about 50.000 workers, or an average of 200 per company, would stop working for one day each.