Workers at E.ON AG (EOA.XE) walked out for a one-day warning strike Wednesday over a pay dispute, but the company and union executives said the action isn't affecting power production.
Workers at E.ON AG (EOA.XE) walked out for a one-day warning strike Wednesday over a pay dispute, but the company and union executives said the action isn't affecting power production.

"We don't have any indication that the strikes are restricting power generation," said Josef Nelles, spokesman for E.ON's energy services unit E.ON Energie.

His comment came in response to a report on German radio station HR3 earlier in the day that said the strikes have resulted in power plant outages.

Frank Haindl, of Germany's powerful services union Ver.di, also reassured power production isn't restricted by the strikes.

"According to my information, the control rooms of power plants are staffed and power production is normal," Haindl said.

Ver.di and German mining, chemicals and energy labor union IG BCE Monday announced around 30,000 of its members will go on warnings strikes at E.ON Wednesday over a pay dispute.

IG BCE and Ver.di are demanding an 8.5% wage increase as well as improved employment conditions for apprentices after finishing their training periods.

E.ON has offered a wage increase of 5%, but demands working hours be raised by one hour a week to 37 working hours. E.ON has further offered one-time payment of EUR400 for each worker and EUR100 for each apprentice.

However, the unions said the increase in working hours would erode E.ON's wage offer, effectively lowering it to 2.2%.

IG BCE and Ver.di have criticized E.ON's offer, saying it is considerably below the wage deals reached by its major domestic competitors RWE AG (RWE.XE), EnBW Energie Baden-Wuerttember AG (EBK.XE) and Vattenfall Europe AG in recent weeks. RWE, EnBW and Vattenfall all settled their wage disputes by raising wages around 4%.

IG BCE and Ver.di have said they would consider indefinite strikes if E.ON Energie doesn't present its workers an improved offer. Indefinite strikes would likely hit power production and force E.ON to purchase power on the power market to ensure supplies to its customers.