Union talks break down in Germany

The public sector workers include many transport workers

Wage talks between the German government and the public sector union Verdi have broken down, raising the threat of further industrial action.

Verdi wants 8% pay rises for two million federal and local government staff, including public transport workers and kindergarten staff.

Up to 100,000 workers have held warning strikes in recent days.

Rail firm Deutsche Bahn has taken legal action to prevent a strike by the GDL union on Monday, Reuters has reported.

The railway operator reached agreement on an 11% pay rise with the train drivers in January, but the two sides could not agree on other terms of the deal.

Deutsche Bahn said it had plans in place that would allow it to operate half of its train services even if the threatened strikes went ahead.

ECB warnings

It is turning into a tough year for wage negotiations, with the European Central Bank warning governments against giving inflation-busting pay-rises.

Verdi has said that it may call strikes in April if agreement cannot be reached with the government.

It has already rejected an offer of a 5% increase over two years.

The two sides have agreed to go to arbitration before holding another round of talks on 29 March.

Since Wednesday, most public transport in Berlin has been hit by strikes that were called by Verdi at the local transport operator BVG.

Rubbish collectors in Berlin affiliated to Verdi have also been on strike this week.