German trade union IG Metall has secured a 4.4% payrise for 100,000 workers in the West German textile and clothing industry.

The deal, achieved between IG Metall and employers, will see wages increase 2.7% by August, and by a further 1.7% by September 2018. They will also receive a total of EUR320 (US$338) for the period February to July 2017.

Employees have also secured more holiday allowance and a better retirement terms. For employees retiring from 2017, they will receive a premium of EUR510. Those retiring from 1 September 2018, this amount will be increased to EUR535. Holiday allowance will rise by 2.5% this year and 2% by 2018.

Manfred Menningen, who led the negotiations for IG Metall, welcomed the results. "[We have] realised a real increase for employees with rising inflation and improving the period of retirement. The improved retirement age and one-off payments will especially benefit those on low income."

The new collective wage agreement has a term of 24 months and ends on 31 January 2019.

The wage increase comes at a time when domestic demand has overtaken exports as the main source of growth for the German economy, according to Reuters