German auto and engineering workers to get 5.5% wage rise after union negotiations

The deal, watched by the European Central Bank for its effect on inflation, comes at a tough time for Europe's biggest economy.

Transcript

00:00Germany's biggest industrial union reached an agreement over a wage dispute within the

00:06country's metal and electrical industry.

00:09The new agreement by trade union IG Metall stipulated a wage increase amounting to 5.5%

00:16over the next 25 months.

00:18Workers initially demanded a 7% wage increase over a period of 12 months.

00:35In response, employers had offered a wage increase of 3.6% over a period of 27 months.

00:42Millions of employees at companies including Mercedes-Benz, BMW and Siemens will be affected

01:00by the agreement.

01:02Hundreds of thousands of employees across Germany have taken part in warning strikes

01:07over the last few weeks.