Rising prices threaten wage disputes in Germany, warns union chief

By John O'Donnell and Christian Kraemer

BERLIN (Reuters) - Rising prices are putting German workers under pressure, threatening to escalate wage disputes, the head of one of the country's top trade unions has warned.

Germany has suffered a spate of strikes in recent years, putting trains, planes, creches and other services out of action, exacerbating the country's problems as its economy grinds to a virtual halt.

As the economy has stuttered, prices have continued to rise, albeit at a slowing pace, triggering demands for higher wages.

Frank Werneke, chairman of the Verdi labour union, one of Germany's largest, said that prices were pressuring workers and that labour shortages, with hundreds of thousands of jobs still vacant, were giving them the confidence to demand more.

He said wages among bus drivers, security personnel or others had often lagged rising prices, triggering a rise in disputes.

"Striking is part of democracy," he said, warning politicians against any attempt to water it down.

"We are in a phase where there are more industrial disputes," he said. "It is not the case that inflation pressure is gone. We need to ... secure at least stable real wages ... in the coming wage negotiations."

Werneke's remarks underscore the continued threat from inflation to Germany's cooperative business model that traditionally married the interests of trade unions and companies, keeping strikes to a minimum.

"Lufthansa doesn't give something voluntarily. The airport operators don't give voluntarily," he said. "These are always tough negotiations. Without at least the possibility of going on strike, wage negotiations would be collectively begging."

In recent years, industrial action has become more commonplace. This includes recent strikes by workers in the electrical engineering and metal industries, which employ millions, that hit companies such as Porsche and BMW.

Werneke reiterated his support for Commerzbank, one of Germany's top banks, in fending off a possible takeover by an Italian rival, warning that such a deal could result in job losses.

(Reporting by John O'Donnell; Editing by Chizu Nomiyama)