IG Metall stir to hit DaimlerChrysler

Ulhas Joglekar ulhasj at bom4.vsnl.net.in
Tue Mar 28 18:45:04 PST 2000


Tuesday 28 March 2000

IG Metall stir to hit DaimlerChrysler STUTTGART: Germany's IG Metall industrial workers union said on Monday it would stage its first warning strike in support of a 5.5 percent pay demand on Wednesday at DaimlerChrysler's Sindelfingen works. IG Metall said 2,000 workers on the night shift would down tools for two hours starting at midnight (2200 GMT) at the plant near the company's headquarters in Stuttgart. The union said a further walkout would be staged later on Wednesday, with 20,000 workers expected to take part at Sindelfingen, which produces Mercedes cars including the big-selling S-Class prestige model. Warning strikes are typically brief stoppages, and IG Metall leader Klaus Zwickel has warned he would ballot members over all-out strike action over the Easter break if the Gesamtmetall employers federation fails to bow to the union's pressure. "We are going to get what we think is fair, and we will fight for it if necessary," Zwickel told meeting of IG Metall functionaries at the weekend. Wage talks have failed to make any progress, with employers offering a pay rise of only 1.5 percent to 3.4 million workers represented by IG Metall and rejecting the union's calls to reduce the retirement age to 60 from 65. IG Metall, the most militant of Germany's big trade unions, has refused to moderate its pay claim -- which is well over the 1.9 percent inflation rate -- even though a more modest deal was struck last week in the chemicals industry. Chemicals workers accepted two pay rises of 2.2 percent and two percent spread over 21 months in a deal which also prolonged an agreement allowing older employees to scale back their working hours before retiring. Zwickel has insisted that the deal struck in the west German chemicals industry would not serve as a model for talks for workers in the engineering sector. The European Central Bank is keeping close watch on pay talks in Europe's largest economy, warning that excessive increases could trigger higher wage settlements across the euro zone and spark a new wage-price spiral. In the latest indication that Europe's central bankers are being vigilant on German pay, Bank of Portugal governor Vitor Constancio said on Monday that high German pay rises could force up unemployment. "The consequence of high salaries in Germany would basically be higher unemployment. The ECB will use its (monetary) instruments in an independent fashion to guarantee that medium-term inflation does not exceed two percent," Constancio told Reuters in Oporto, Portugal. (Reuters) For reprint rights: Times Syndication Service
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