German union IG Metall reached an agreement with employers for 3.6 million industrial workers on Saturday. The deal includes a 4.3% wage increase. Workers had asked for a 6.5% increase, citing Germany's strong economic performance. The government had said that they could not afford the higher wage increase. The agreement will also secure the position of apprentices and puts some limits on temporary workers. The agreement also forestalls strikes. The deal is expected to serve as a template for other industrial sectors.
See "German union, employers agree 4.3 percent raise", Juergen Baetz, Business Week, May 20, 2012