German union demands 5% raise for workers in strained engineering industry

By Rachel More

BERLIN, Sept 23 (Reuters) - Germany's top industrial union, IG Metall, is demanding a 5% pay rise for 3.7 million workers in the engineering industry ahead of collective bargaining talks overshadowed by immense pressure on the German auto sector.

"Of course, we see that some companies are under considerable pressure and that this will continue. But as IG Metall, we do not accept deterioration in wages and employment rights," IG Metall President Christiane Benner said on Wednesday.

"We need a vision that goes beyond job cuts, relocations, and plant closures," Benner added.

Negotiations are taking place against a tense backdrop. Mass layoffs are under way in German industry, most notably in the nation's auto sector, which is straining under Chinese competition, steep tariffs and high production costs.

The talks, which cover a range of sectors across Germany's metal and electronics industry, are scheduled to begin on October 7, with strikes possible from November 1.

The employers association has already criticised the union's demand, arguing that jobs in Germany can only be secured with lower labour costs.

Carmakers like Volkswagen and Mercedes-Benz have said auto production in Germany is too expensive and threatened the closure of some plants.

(Reporting by Rachel More, editing by Kirsti Knolle, Ludwig Burger, Alexandra Hudson)