MUNICH, Nov 12 Reuters Germany39;s largest industrial union said it had struck a wage deal in regional talks for the electrical engineering and metal industries on Tuesday, signalling an end to difficult negotiations that saw tens of thousands of workers go on strike.

After a marathon 18 hours of talks, the union said it would announce details of the deal at a news conference at 0930 GMT.

The deal comes at a difficult time for Europe39;s biggest economy, which is engulfed by a government crisis and has seen some of its biggest industrial icons ask for painful cuts to stay competitive in the face of rising competition.

IG Metall had sought a pay rise of 7 while employers had offered a 3.6 hike over a period of 27 months. In the previous round, the sides agreed a 8.5 wage increase.

The agreement comes a week ahead of a third negotiation round over wages and plant closures at Volkswagen, which has asked workers at its namesake brand to take a 10 pay cut, arguing labour costs are way too high.

Negotiators for the IG Metall trade union39;s coastal and Bavarian districts had met employers39; associations. Usually, the union39;s executive board recommends that all districts adopt the pilot agreement for the 3.9 million workers in key sectors covered by the talks.

Reporting by Alexander Huebner Writing by Madeline Chambers and Miranda Murray Editing by Friederike Heine

Source Reuters