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To: yard_man who wrote (163948)5/5/2002 7:47:28 PM
From: Haim R. Branisteanu  Read Replies (2) | Respond to of 436258
 
Germany's IG Metall union readies strike

Copyright © 2002 AP Online

By DAVID McHUGH, AP Business Writer

FRANKFURT, Germany (May 5, 2002 10:27 a.m. EDT) - Germany's main industrial
union was poised to strike over wages Sunday in a move that could slow the recovery
of Europe's biggest economy. Auto workers expected to boycott the night shift at
DaimlerChrysler's flagship car plant.

Leaders of the 2.7 million-member IG Metall union, which also represents workers in
electronics and engineering, say they'll disrupt production with one-day work
stoppages at major employers in southern Baden-Wuerttemberg state, a heartland of
German manufacturing.

The union told some 2,000 workers at DaimlerChrysler's sprawling Sindelfingen works
to stay home from the late shift that begins at 10:30 p.m. The plant is the largest
production facility for Mercedes-Benz cars, the German-American company's most
consistent profit-maker.

The stoppage is to spread Monday to U.S.-headquartered tractor maker John Deere,
which has a plant in Mannheim, and car makers Porsche and Audi.

Any wage settlement in Baden-Wuerttemberg is expected to set the pattern for
workers across Germany. Most contracts are negotiated between unions and regional
employer associations representing entire industries, not company by company.

Pay talks broke down April 19 after the union rejected the employers' offer of a 3.3
percent increase for 15 months. Employers say they can't go any higher, and some
economists say any increase over 3 percent endangers jobs and fuels inflation.

The union has said it wants a 6.5 percent increase as part of a one-year deal to
compensate workers for moderate increases in the past, inflation and higher
productivity, though observers expect it to settle for less.

The union has moved toward strike action despite appeals from Chancellor Gerhard
Schroeder for a deal that doesn't trample signs of economic recovery in Germany,
which suffered a mild recession in the second half of last year.

Schroeder, a Social Democrat who relies heavily on union support, faces national
parliamentary elections Sept. 22 that will decide whether he gets another four years
in office.

Conservative challenger Edmund Stoiber, the governor of Bavaria, has lambasted
Schroeder for the country's sluggish growth and its unemployment rate of 10 percent.