Trade unions and employers in Germany have started collective bargaining negotiations for public-sector employees in most federal states with seemingly irreconcilable differences.

The aim is not only to achieve inflation compensation, but also a real wage increase, said Verdi trade union boss Frank Werneke immediately before the start of talks in Berlin on Wednesday.

Verdi and the civil servants' union dbb, is negotiating with the TdL association which represents Germany's federal states.

The unions want a 7% pay increase, or at least €300 8$348) per month, for public-sector employees.

The TdL negotiator, Hamburg's Finance Senator Andreas Dressel, has rejected the demand as too high.

Meanwhile, dbb boss Volker Geyer told dpa: "We are counting on constructive negotiations." But if employers refuse to cooperate and do not submit an offer, pressure will have to be increased.

"Then actions and strikes are conceivable in many areas, for example in road maintenance services, among employees of the state police forces, university hospitals or in financial administration," said Geyer.

Three rounds of negotiations are planned with the the third scheduled for February 11-13 in Potsdam.

According to Verdi, about 925,000 public-sector employees and 1.3 million civil servants are affected.