Stuttgart  - Sports car manufacturer Porsche lost one hour's production Thursday as the powerful IG Metall trade union called members off the job to press demands for paid early retirement.

Labour leaders at Porsche on the outskirts of Stuttgart said 2,700 staff took part in a rally.

The union says 100,000 of its members in Baden-Wuerttemberg state are to strike by Friday to raise pressure before talks on Monday with employers about labour buy-outs for all older workers.

The German government has become disenchanted with early retirement schemes, which were meant to create jobs for young people, and is to end official funding for them at the end of next year. Instead Germany is raising the standard retirement age from 65 to 67.

IG Metall is defending retirement at 57 with large pensions. It demands that employers keep the practice going alone past 2009 by topping up worker pensions. The union says buyout terms secured in Stuttgart would then set a precedent in the rest of Germany. (dpa)