German workers demand 8 per cent rises

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It is the union's biggest pay demand in 16 years and, on the back of the financial crisis, one government and industry say is unrealistic.

Companies such as Siemens, BMW and other multinationals with UK operations fear a big victory for the union could entail downsizing abroad.

UK unions are watching the IG Metall fight too. A victory for German workers would embolden them.

"Profits have exploded in the metals industries, Germany has been world export champion for years, the sales margins are the highest since the 60s and never before has so little been spent on wages and salaries measured as a part of turnover," said IG Metall boss Berthold Huber.

"Now it's our turn."