The ongoing tariff negotiations in Germany's metal and electrical industry have reached a critical juncture, with the fourth round of talks underway in Hamburg.

Thousands of workers have taken to the streets in protest, demanding a 7% wage increase over a 12-month period.

Employers, however, have proposed a more modest increase, starting with a 1.7% raise in July 2025, followed by 1.9% in July 2026, over a 27-month contract.

The negotiations are marked by cautious optimism, with both sides hoping to reach an agreement, though significant differences remain, particularly regarding financial terms.

The IG Metall union has threatened further strikes if a satisfactory deal is not reached, emphasizing the need for better wages amid economic challenges.

The outcome of these talks will impact approximately 3.9 million workers across the industry.