Employers and trade unions in the metal and electrical industry are still far apart on the key issue of a percentage pay rise ahead of Monday's attempt to reach an agreement.

The issue is the most difficult to discuss, said the chief negotiator for the IG Metall district on the coast, Daniel Friedrich, on Friday. "When it comes to money, there is very, very, very little imagination at the moment." The northern German bargaining district, like the Bavarian district, has been tasked by the union's national executive committee with seeking a pilot agreement with the respective employers' associations in Hamburg on Monday. The tandem approach is a novelty, as agreements were previously always forged in one large district, i.e. Baden-Württemberg, Bavaria or North Rhine-Westphalia. The new approach stands for more transparency and broader cooperation in collective bargaining policy, said Friedrich.

IG Metall is demanding seven percent more pay over a twelve-month period for the 3.9 million employees nationwide. The employers' associations have so far offered 3.6 percent in two stages over 27 months. In recent weeks, the bargaining parties have made progress in working groups on other union demands such as more money for trainees or an extension of the option to choose between more money and time off work.

Since the end of October, more than 350,000 employees in Germany's most important industrial sector have taken to the streets and the factory gates in warning strikes to put pressure on their demands. "Our colleagues are fighting for their jobs, for more money and for justice," IG Metall boss Christiane Benner told the Redaktionsnetzwerk Deutschland (Friday editions). There is a chance of an agreement. "But we are still a long way apart."

After the collapse of the federal government this week, the longing for stability among employees is great, explained the chief negotiator of IG Metall Bavaria, district leader Horst Ott. He is therefore entering the race with the responsibility "that at least you will find compromises - but not at any price." This is because expectations of the wage increase are also very high due to the sharp rise in the cost of living.

The negotiations will begin on Monday afternoon in Hamburg following further action by the union and could last into the night. If no agreement is reached, the union is prepared for an escalation with 24-hour strikes in all regions, explained Friedrich.

(Report by Ilona Wissenbach. Edited by Olaf Brenner. If you have any queries, please contact the editorial team at frankfurt.newsroom@thomsonreuters.com)