[FRANKFURT] Germany's powerful metalworkers' union, IG Metall, said on Tuesday it has reached agreement with management for a 3.4 per cent wage increase, in a deal expected to benefit four million workers in the sector.
The deal, which applies to workers in the state of Baden-Wuerttemberg but is expected to be adopted for the whole country, came after hours of talks and was welcomed by IG Metall as "an important step".
The union had been demanding pay rises of 5.5 per cent for workers in sectors including electronics, the auto industry, household electrical goods and semi-conductors.
Its pay deals are used as a benchmark for much of German industry.
In recent weeks, around 700,000 workers in the sector have staged warning strikes and temporary stoppages across the country.
Tuesday's agreement, which came after a fourth round of talks between union representatives and employers, applies to pay rises until the end of March next year.