In light of the economic recession, IG Metall engineering union (the largest German trade union) conceded to smaller wage increases in an 18-month contract with German industry, effectively preventing a strike. The agreement amounts to an annual 3.1% increase ? significantly lower than the 8% first demanded by IG Metall. The deal should end recent conflict however, including several warning strikes. The contract divides raises into two parts: 2.1% in February, and 2.1% in May. Additionally, companies may postpone the second payment until December if necessary.
See "German strikes averted as union eases pay demand", Chris Bryant, Financial Times, November 12, 2008