German unions vote for huge strike

Porsche could be targeted by strike action

BERLIN, Germany -- Germany is facing what could be its biggest industrial action for seven years after workers voted to strike.

Economists fear the move by the huge IG Metall union could damage Europe's biggest economy just as it starts to emerge from recession.

Any long dispute or hefty pay award could also rock Chancellor Gerhard Schroeder's bid to win a second term in office in elections to be held on September 22.

Members of the IG Metall union voted by more than 80 percent for strike action in the test area of Berlin/Brandenburg after turning down a pay rise offer of 3.3 percent. Approval in the key Baden-Wuerttemberg region is also expected later.

Union bosses are due to meet on Thursday to decide on which companies to target in series of flexible strikes -- Germany's first since 1995.

IG Metall is the country's main union representing 2.8 million members of the workforce, concentrated in the carmaking, electronics, machine-making and clothing industries.

Union officials initially demanded a 6.5 percent pay increase, citing restraint in earlier pay deals. But high unemployment -- about one in 10 are without work -- and rising inflation has sparked concern among Germany's workers.

Talks to try and resolve the issue failed 11 days ago despite the union lowering its pay demand to four percent.

Employers had increased their offer from an initial two percent for this year and next to 3.3 percent for 13 months and a one-time cash payment.

Union officials have said they may seek to cripple larger employers such as DaimlerChrysler or Porsche with intermittent stoppages of a day or two at a time starting from Monday.