GERMANY-RETAIL/STRIKES

NOVEMBER 30 2007 18:22h

German Shop Workers Begin Christmas Pay Strike

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´´This year, Christmas shopping is, for us, more important than ever,´´ Josef Sanktjohanser, head of the HDE retail association, said.

More than 10,000 shop workers in half of Germany's federal states took part in strikes targeting Christmas shopping on Friday, the retail workers' union said.

The Verdi union, which represents around 2.4 million members, including shop staff, is asking for pay rises of 4.5-6 percent and a minimum monthly wage of more than 1,500 euros ($2,212). There is no minimum wage for retail workers in Germany.

"In order to avoid more drastic action, (employers) should make an offer as soon as possible so Christmas presents can arrive under the tree in time and shoppers don't have to suffer," Margret Moenig-Raane, head of the Verdi union, said in a statement.

The striking members did not turn up for work during shop hours, the union said, without specifying how many shops were affected. If there is no wage deal, the union is threatening bigger strikes over the next few weeks.

The walkout, which took part in eight of Germany's 16 states, is an escalation of strike action earlier this month, when 8,000 to 10,000 shop staff went on strike.

Christmas sales, which make up around one fifth of the German annual retail sales figure, are expected to be flat in nominal terms this year, the country's retail association said on Thursday, with consumers hit by high energy and food prices.

"This year, Christmas shopping is, for us, more important than ever," Josef Sanktjohanser, head of the HDE retail association, said.

The HDE forecasts 75 billion euros worth of sales in November and December, roughly the same figure for the equivalent period in 2006. The association has also cut its retail growth forecast for next year.

Germany's retail sector has struggled to grow in recent years as Germans save rather than spend.

The savings rate rose to its highest level since the mid-1990s in the first half of this year -- above 10 percent of income -- with households worrying about the impact of welfare reforms.

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