German Workers, Employers Agree on 4% Wage Hike

Germany's IG Metall metalworkers union and the country's employers group have reached an agreement that would give workers a 4.3% raise over 13 months.

The increase is equivalent to a 4% annual gain double the inflation rate and the biggest wage hike the union has won in at least five years.

Workers had demanded a 6.5%, and employers offered 3%. The German government has encouraged companies to be more generous with wages, which could boost the country's consumer spending.

The union was unsuccessful in its quest for a mandate that would make temporary employees permanent after only a few months on the job. But permanent jobs will be mandated only for temporary staff after two years.