Germany faces more strike votes

IG Metall won 4 percent wage hikes after rotating strikes across Germany

BERLIN, Germany (CNN) -- Labour leaders in key German industries are threatening more strikes to back their demands for pay rises.

Construction union IG Bau is asking its 950,000 members to vote on whether to strike for the first strike in more than 50 years after contract talks broke down at the weekend.

The vote has been set for June 15, although IG Bau leader Klaus Wiesehuegel said "warning strikes" could take place as early as Friday, Reuters reported.

Meanwhile, services sector union Verdi is seeking a 6.5 percent pay rise for Germany's 240,000 postal workers.

Tuesday's move comes just weeks after a crippling strike by Germany's largest industrial union, IG Metall, which last month won a 4 percent deal for its engineering workers after a series of rotating nationwide strikes.

IG Bau wants a 4.5 percent annual wage increase for its members, whose contracts expired at the end of March. Employers have offered a 3 percent rise from September to March 2003 and a 2.1 percent increase for the following 12 months.

Verdi, which represents about three million workers, said it was considering action after a second round of negotiations with Deutsche Post ended without a firm offer from the employer.

"Deutsche Post AG must finally make an offer that can form the basis of negotiations, Verdi said in a statement. "We will make that clear to the employer in the coming weeks."

Another round of talks is set to begin on June 10.

Wage settlements have become a crucial issue in September's national election. Chancellor Gerhard Schroeder was elected on a promise of economic growth and lower unemployment -- but both economic indicators have deteriorated during his term in office.

Many economists believe that Germany's fragile economic recovery could be hindered by hefty pay increases, which could result in more layoffs and higher inflation.

The threat of inflation could also prompt the European Central Bank to raise interest rates, further increasing the costs of doing business at a time when many companies are struggling due to the global economic downturn.