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Most German Companies See Room for Just 3% Pay Rise, Poll Shows

About 54 percent of German companies see room for pay rises of 2 to 3 percent, while unions want a 6.5 percent increase in the electrical and metal industries, Handelsblatt said today, citing a Forsa poll.

A further 12 percent of the 654 German top managers polled by Forsa conceive of an increase of less than 2 percent in current negotiations over future pay for workers, the newspaper said. About 42 percent of managers will have to cut jobs, 23 pewrcent will need to cut costs in other areas and 11 percent may opt to move parts of the business overseas if negotiations lead to excessive wage increases, the poll showed.

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