Mixed duo to head German union

This is no love match, say Mr Peters and Mr Huber

Germany's IG Metall trade union has chosen a new leadership team, in an effort to end a power struggle and win back some of its once-widereaching influence.

The union's executive agreed to the choice of left-wing traditionalist Juergen Peters as head, and the moderate Berthold Huber as his deputy.

Mr Peters was originally picked in April, but was blackballed by retiring head Klaus Zwickel, who accused him of orchestrating a failed strike in eastern Germany.

The row descended into a bitter struggle between traditionalists and progressives.

At the same time, the union's influence over policy-making has fallen sharply, at a time when the German Government is promoting controversial labour and economic reform.

Hard times

The choice of Mr Peters and Mr Huber is likely to be ratified by a union congress in August.

The partnership represents a compromise between the two factions; "a partnership born of common sense but no love match," Mr Huber said.

"There was an agreement between those two that Mr Peters will run as a candidate for four years," IG Metall director Klaus Mehrens told BBC World Business Report.

"It's very likely that Mr Huber will be his successor."

Uncertainty

But without a clear indication of the direction that union policy is going to take, observers were sceptical about its chances of regaining influence.

The hardline policies advocated by Mr Peters are facing a severe challenge, as Chancellor Gerhard Schroeder - once a close union ally - pushes through spending cuts and market liberalisation.

IG Metall was defeated in an eastern German strike this summer, the cause of the row with Mr Zwickel and the most serious setback in the union's recent history.

Its membership has dropped sharply, falling by 47,000 to 2.6 million this year alone, and leading to mounting financial problems.