Berlin - A second day of strikes in schools, courtrooms, university clinics and regional government offices across Germany on Friday charged the atmosphere ahead of public sector pay negotiations due Saturday.

Tens of thousands of public service employees, from 14 of Germany's 16 federal states, took part in demonstrations organised by Verdi trade union.

In the state of Saxony alone, the teachers' union said 16,000 of their members took part in the protests. Lessons were cancelled in more than two-thirds of the state's 1,400 schools.

Trade unions are demanding an 8-per-cent pay increase for 700,000 employees at Saturday's negotiations. The employers have countered with an offer of an additional
4.2 per cent pay for the next 24 months.

If the two sides are not able to hammer out a compromise, Germany is faced with the prospect of indefinite industrial action.

In a separately coordinated strike, Bavaria's regional transport network ground to a halt Friday. From 3:30 am (0230 GMT), no trams or underground trains were operating in the state capital Munich.

Bus, tram and commuter train drivers across Bavaria were called to participate in the strike, in an attempt to negotiate a 9.5-per-cent salary increase. A six-per-cent pay rise is currently on the table, combined with an increase in working hours.

In Germany, public sector employees are not allowed to strike once they reach a sufficient employment grade to be appointed as civil servants. (dpa)