FRANKFURT, July 23 (Reuters) - Talks between automaker DaimlerChrysler and its employees over comprehensive labour cost-cutting measures neared agreement early on Friday ahead of more protests should the negotiations fail.
German state-funded broadcaster ZDF reported late on Thursday that a deal had been reached over demands from Mercedes to save 500 million euros ($613.1 million) a year in personnel costs, mainly at its less efficient Sindelfingen plant.
Daimler was not available for comment, while a spokesman from the German engineering trade union IG Metall denied the report.
"There is no agreement over the 500 million," Frank Stroh said.
After days of failed bargaining, the stand-off has triggered intense debate in Germany over the high price of domestic labour during a time when many companies are outsourcing to low-wage regions to remain competitive.
If employees at Daimler's profitable luxury unit agree to work longer hours for less pay in exchange for job security, the deal would signal another victory for more flexible labour conditions in Europe's largest economy.
Earlier on Thursday, IG Metall's Stroh said the two sides had reached an agreement on certain points relating to management's demands.
"The next few hours will be decisive," he said. "No one is willing to give the other any concessions in these talks."
Demonstrations in Mercedes plants across the country loom should the two sides fail to reach an agreement in the few hours left before employees start to show up for work on Friday.
"Tomorrow is the day when the work force will either be informed of a result or whether it's back to the street," said a spokeswoman representing Daimler employees.
Last week, over 60,000 workers took part in a day of marches to protest against management's threats to cut 6,000 jobs in Sindelfingen if they did not agree to company demands.
In an attempt to defuse the situation, the company has said its management board has offered to accept lower pay too although Daimler declined to give details on how much less.
IG Metall itself needs to appear to have at least wrestled out important concessions from management if the union wants to stem a steady loss of members and retain considerable influence.