IG Metall, the German engineering and metal workers’ union, is to press for a pay rise of 5.5% for its 3.7 million members in the forthcoming wage round, which is used as a ‘benchmark’ for many of Germany’s industry sectors.

Detlef Wetzel, the head of IG Metall (pictured), said: “Raising wages by 5.5% will help to support economic growth, as domestic and consumer demand are the primary engines of growth at the moment. The companies have the means; it’s only fair that employees receive their fair share of the profits.”

Mr Wetzel argued that “gloomy scenarios of a downturn are unfounded,” pointing out that most economic analysts expect the German economy to grow by almost 2% next year.

The IG Metall board’s recommendation will now go to the union’s different regional branches for formal approval on 25 November. The pay talks will begin in January — after the current agreements expire in December.