SALZGITTER AG The current deal, under which steelworkers received 2.3 percent from January 2016, runs out at the end of February. Negotiations are due to begin on Feb. 22, with a result expected in early March at the earliest.
"The economic situation in the steel industry is stable," said lead negotiator Knut Giesler. "Orders and steel prices are rising. Employees should get their fair share."
Northwest Germany, home to the steel plants of Thyssenkrupp (>> ThyssenKrupp AG), Salzgitter (>> Salzgitter AG) and ArcelorMittal (>> ArcelorMittal), employs 72,000 of Germany's roughly 86,000 steelworkers.
Steel prices have risen in recent months as Chinese demands has recovered while its exports have declined. But most steelmakers still expect slower earnings due to higher prices for coal, which they need to heat furnaces.
Verdi, Germany's biggest white-collar union, is seeking a wage increase of 6 percent for more than 2 million civil servants and other public-sector employees.
The German economy expanded by 1.9 percent in 2016, its fastest pace in five years, and growth momentum is expected to continue this year, although most forecasts point to a weaker expansion due to calendar effects.
Wages for German workers with collective agreements rose by 2.4 percent on average in 2016 but by only 1.9 percent in real terms due to rising inflation - less than in the previous two years - according to a study published this month.
(Reporting by Matthias Inverardi; Writing by Georgina Prodhan; Editing by Arno Schuetze and David Evans)
