German metalworkers' union reaffirms 7% pay rise demand
FRANKFURT, July 9 (Reuters) -Germany's largest industrial union has confirmed a demand for 7% higher wages, previously recommended by its leadership for this year's collective bargaining round, a key indicator of wage growth in the euro area.
"Inflation rates may well be declining but the prices to pay at the checkout remain high for people," the IG Metall union said in a statement on Tuesday.
The union's leadership last month advised members and regional panels to demand a 7% raise for a 12-month period for wage talks on behalf of 3.9 million workers due to begin in mid-September.
The sector's employers' association, which includes companies such as Thyssenkrupp TKAG.DE, Siemens Healthineers SHLG.DE and unlisted Bosch GmbH, have rejected the union's demand as excessive.
The European Central Bank said last month it would closely watch wage growth to inform its monetary policy after cutting interest rates for the first time since 2019.
German consumer price inflation was 2.5% in June, down from 2.8% in May.
Reporting by Ludwig Burger, Editing by Rachel More
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