Union slams wage offer for key German industries with threat of strikes
Employers propose 3.6% rise vs union demand of 7%
Siemens, BMW, Mercedes involved in talks
Strikes possible from Oct. 29
Updates throughout with formal offer, background, quotes from union and employers' side
By Ilona Wissenbach and Alexander Hübner
NUREMBERG, Germany, Oct 15 (Reuters) -Germany's largest industrial union slammed a proposed pay rise for almost 4 million workers in key sectors on Tuesday as too little too late, teeing up difficult collective bargaining negotiations and possible strikes in Europe's largest economy.
The 3.6% raise over a period of 27 months - announced formally by the regional employers' association Nordmetall on Tuesday and in line for what would be put on the table nationally - is considerably lower than the 7% sought by the union.
"It's too little, the pay rises come too late and the term is too long," said Daniel Friedrich, chief negotiator for the IG Metall union's regional district in northern Germany.
"This will make it difficult to reach a good solution quickly," he said in a statement.
Employers represented in the talks, which are taking place across the country, include Siemens SIEGn.DE, Mercedes-Benz MBGn.DE and BMW BMWG.DE.
IG Metall's group for northern Germany said it would evaluate the offer next week and decide on further steps, which could include strike action as of Oct. 29.
The proposal foresees a staggered pay rise of 1.7% from July 1, 2025 and 1.9% a year thereafter.
"Our offer is a sign of appreciation for employees, even in times of crisis. At the same time, we are at the limit of what our member companies can cope with across the board," said Lena Stroebele, who is leading the negotiations on behalf of employers in the northern district.
"The damage would be enormous," Angelique Renkhoff-Muecke, an employers' representative in the southern district of Bavaria, said of the union's demands, pointing to a structural crisis in German industry and shrinking order books.
Not included in the talks is Volkswagen VOWG_p.DE, which has its own in-house collective bargaining negotiations, thesecond round of which are scheduled to begin on Oct. 30.
The first round ended without agreement and the IG Metall industrial union has threatened strike action.
Beset with high costs and fierce competition from abroad, Volkswagen is considering closures of plants in Germany, illustrating the challenges it faces more broadly as Europe's largest economy battles against the threat of de-industrialisation.
Reporting by Ilona Wissenbach in Frankfurt and Alexander Huebner in Nuremberg, Writing by Rachel More, Editing by Madeline Chambers and Ed Osmond
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