Germany's largest industrial union said on Tuesday that workers in the electrical engineering and metal industries would get a 5.5% wage increase over 25 months under a pilot deal struck with employers after a marathon 18 hours of tough negotiations.

After a marathon round of negotiations between union and business leaders, 3.9 million employees in Germany's metal and electrical industries are to receive a significant pay rise. The IG Metall union and employers' associations said in Hamburg on Tuesday that an agreement has been reached following 18 hours of negotiations to raise wages by 5.

Germany’s biggest labor union struck a key wage agreement with employers that may raise pay for about 3.9 million workers and avert strikes in the country’s beleaguered manufacturing sector.

By Alexander Hübner and Ilona Wissenbach MUNICH/FRANKFURT (Reuters) -Workers at German carmakers and engineering companies will receive a 5.5% wage increase over 25 months under a pilot deal struck with employers,

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