Strike averted in German industrial sector

SINDELFINGEN/GERMANY: Germany's leading industrial union IG Metall says it has agreed to accept a 4.2 pay rise over the next 18 months and will not go on strike.

The agreement covers 815,000 workers represented by the union in Baden-Wuerttemberg state but is expected to be adopted for the 3.6 million represented nationwide.

Most German wage contracts are negotiated between the union and regional employer associations representing entire sectors, not company by company.

Workers are also to receive a one-off payment of 510 euros ($639) for November through January as part of the package.

Both sides agreed to the deal after 22 hours of talks that ended Wednesday. IG Metall had threatened to stage a full-blown strike if an agreement was not reached.