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Already dealing with massive unemployment, a stagnant economy, a reprimand from the European Commission earlier this week over Germany?s budget deficit, and the release of figures predicting massive budget shortfall this year and next, German Chancellor Gerhard Schroder today received yet another dose of bad news. The country?s recently unified service sector trade union Verdi announced today that unless the government agreed to raises of at least three percent in contract negotiations for 2.9 million public employees who have been without a contract since the end of October, strikes would be forthcoming. Arguing that public sector pay has failed to keep pace with the private sector over the past decade, and aiming to win the same three to four percent raises won earlier this year by private sector unions like IG Metall (see WIT?s for May 16, and 20, 2002), Verdi leadership delivered the ultimatum after government negotiators said that a wage freeze was all they could offer.