MUNICH/HAMBURG (dpa-AFX) - The bargaining parties in the metal and electrical industry want to bring the negotiations to a close on Monday - but reaching an agreement on an increase in income is still a high hurdle. Horst Ott, head of the Bavarian IG Metall union and chief negotiator, said that there were a few issues where a solution was gradually coming into sight. "But we are miles apart on the core issue of money." They are not yet on the home straight. "Everyone sitting around the table is aware of their responsibility."

This was also emphasized by the Bavarian employers. Their chief negotiator Angelique Renkhoff-Mücke spoke on Monday of a great willingness to reach an agreement, but qualified that the agreement must be "responsible" and provide stability.

The bargaining parties in the Bavarian and coastal bargaining districts want to try to reach a pilot agreement for 3.9 million employees in the metal and electrical industry nationwide on Monday. Renkhoff-Mücke also emphasized that it would not be easy. Both sides might have to "jump over a little stick", she said, "maybe it will be a big stick." Nevertheless, she estimated the chance of reaching an agreement in the upcoming fourth round of talks at "over 50 percent". What is needed now is "a kind of crisis agreement" to stabilize Germany as a business location.

High expectations among employees

The district manager and chief negotiator of IG Metall Küste, Daniel Friedrich, said that the expectations of union members were high. IG Metall had made its 7 percent demand in May, when the economic outlook seemed even better. IG Metall is prepared if the talks fail, he said: Every district had submitted plans for 24-hour strikes to the union headquarters in Frankfurt. However, chief negotiator Renkhoff-Mücke believes that the employers are currently less susceptible to blackmail than in previous wage rounds, when many companies were working at full capacity in production.

According to IG Metall, more than half a million employees took part in protests in the second week of the warning strike. "This movement outside the factory gates must finally be followed by movement at the negotiating table," demanded Christiane Benner, First Chairwoman of the union. "Our colleagues are determined and rightly impatient."

The union is demanding a seven percent wage increase over a period of one year. The employers are offering a total of 3.6 percent more in stages for a term of 27 months after nine zero months. Incremental increases and contract terms often played an important role in previous wage agreements.

Flexible arrangements in exchange for promises

Employers point to the constant stream of bad news from companies and ongoing job cuts. Many companies no longer see any other way out, said Renkhoff-Mücke. Ott, on the other hand, emphasized: "When companies get into difficulties, we have always found a solution. But we are talking about a collective agreement."

The exploratory talks are, for example, about exemptions for companies that generate less than 2.3 percent return on sales. The employers want to expand such exemptions.

First pilot test with two collective bargaining districts

For the first time, two collective bargaining districts are jointly attempting to reach a pilot agreement. In previous years, there have been pilots in Baden-Württemberg and North Rhine-Westphalia, and in Bavaria in 2013.

In Hamburg, IG Metall is planning a large rally on Monday with First Chairwoman Benner. Negotiations are due to begin at 4.30 pm. Friedrich expects that it will definitely go on "until after midnight".

"Full throttle again" for warning strikes

IG Metall intends to continue calling for warning strikes until a pilot agreement is reached. "We are going full throttle once again to show the employers that we are serious," said Ott.

The late shift at BMW's largest European plant in Dingolfing was to finish work two and a half hours earlier on Friday. In the Allgäu region, all shifts at AGCO Fendt, Robert Bosch and Liebherr Aerospace are to end their shifts two or three hours earlier. In total, IG Metall Bayern is calling on employees in 36 companies to go on warning strike./rol/als/ruc/DP/stw