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Will strike action cripple German giants?

Mercedes-Benz C Class production line

A dispute between Europe’s largest industrial union, IG Metall, and some of Germany’s largest employers, including its leading carmakers, have stalled and could lead to strike action. IG Metall is seeking a 6.5% wage increase for its workers, despite a German economy that is struggling with the burden of the European economic crisis.

It’s been reported that BMW, Daimler and Porsche are expecting confrontation with the union following talk of strike action in the previous negotiations. A 3% wage increase over a 14 month period has been offered, but that was quickly rejected by IG Metall.

Opel could also be caught up in the action as it continues to wrestle with the idea of closing down two of its German-based plants.

[Source: The Detroit Bureau]