FRANKFURT, Nov 1 (Reuters) - Workers in Germany's engineering industry started temporary warning strikes on Sunday, in a dispute that pits 3.7 million workers seeking a 5% pay rise against companies suffering from a deepening crisis in the automotive sector.

• Around 300 employees of Thyssenkrupp's Rasselstein unit as well as workers from surrounding companies joined the first walkout at midnight, the IG Metall union said on Sunday

• The union has rejected an offer made by employers during a second round of wage negotiations, describing it as a "minus offer" — a real-terms pay cut

• Employers have offered 1% of annual gross pay as a one-off payment in the summer of 2027 and an additional 1.3% increase from July 2028

• "The midnight warning strike at thyssenkrupp Rasselstein is merely the start of a massive phase of warning strikes," Jörg Köhlinger, head of IG Metall's central district, said

• IG Metall is demanding a 5% wage rise over 12 months, according to Marc Winter, a union official and works council head at thyssenkrupp Rasselstein

• The union said further warning strikes would follow in the coming days across the bargaining region covering the states of Hesse, Rhineland-Palatinate and Saarland as well as in Thuringia

(Reporting by Christoph Steitz; Editing by Hugh Lawson)

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