Key 5.6 per cent pay deal for German workers

Germany's IG Metall engineering union has secured a key deal with employers for a two-stage wage increase for metal and electrical workers in Bavaria which will serve as a basis for a nationwide agreement for 3.7 million employees.

Engineering workers in the southern state will get a 3.4 per cent increase in July, followed by a 2.2 per cent hike in May 2014. The agreement runs for 20 months.