AUGSBURG, Germany Jan 14 (Reuters) – Germany’s biggest
union IG Metall held a first round of wage talks with employers
on Wednesday in Bavaria but they ended, as expected, with no
agreement.

IG Metall is seeking a wage rise of up to 5.5 percent next
year for the 3.7 million workers in the metals and engineering
sector. It also wants more time and money for training and
better conditions for older part-time workers.

Employers have not yet made their offer, but may do that at
their next meeting.

Despite slowing growth and low inflation, the union argues
that Europe’s biggest economy is strong enough to support its
claim.

Bavaria’s IG Metall chief Juergen Wechsler said the demand
was justified as companies were doing well and earnings at
DAX-listed companies had risen by 9 percent last year. Wage
rises were needed to stop deflation, he said.

In the coming days, IG Metall’s branches in North
Rhine-Westphalia and Baden-Wuerttemberg will meet employers.
Usually the first region to strike a deal is a precedent for the
whole country.

The union has threatened to carry out warning strikes, which
could take place after the next round of talks on Jan 28.

Wage demands are usually far above the level finally agreed.
In 2013, IG Metall agreed to a 20-month deal that saw a 3.4
percent and 2.2 percent hike in wages in two steps.

(Reporting by Jens Hack; Writing by Madeline Chambers)