Strike threat looms at Daimler, Siemens as union wage talks fail

Bloomberg

Germany’s most powerful union IG Metall failed to reach a labour deal for some 3.9 million workers in Europe’s largest economy, setting the stage for potentially disruptive 24-hour strikes at industrial giants from Siemens AG to Daimler AG.
Talks with IG Metall broke off with no deal after 16 hours of negotiations, employer organisation Suedwestmetall said. The union, which has rallied more than 900,000 people across Germany for hour-long protests in recent weeks, said it plans day-long walkouts that would have a much more disruptive impact.
“Employers don’t appear to react to measures apart from more pressure,” IG Metall chief negotiator Roman Zitzelsberger said. Broad-based strikes are planned to start next week, he said.
The failed talks marked the fifth round of negotiations with no deal. Robust economic growth and record-low unemployment have fuelled IG Metall’s push to raise pay 6 percent and subsidise wages for workers who reduce hours to care for kids or older family members. “We moved towards the demands of IG Metall with offers and possible solutions,” said Stefan Wolf, chief executive officer of car-parts maker ElringKlinger AG and Suedwestmetall’s top negotiator. “But IG Metall forced our hand by making several non-negotiable demands that weren’t possible for us to agree to.”
Policy makers from central bankers to politicians have been watching the collective bargaining talks closely. Apart from the disruption from potential factory shutdowns, economists are concerned about the longer-term impact of wage stagnation. If the region’s most prosperous country can’t increase pay, others may face an even greater hurdle. That would complicate the European Central Bank’s efforts to boost inflation and eventually unwind fiscal stimulus measures.