Thousands of public-sector workers went on strike across Germany yesterday, shutting hospitals and causing travel chaos in a demand for higher pay that is fuelling inflation fears in Europe's biggest economy.

Verdi, the service sector union that wants an eight per cent wage increase for some two million federal and local government staff, targeted the west of the country and major airports having already organised a wave of stoppages on Tuesday.

About 100,000 workers took part in the walkouts, said the union which plans more strikes in the south today ahead of a fifth round of wage negotiations with employers.

Economists say if generous wage increases are adopted across other industries they could fan inflation and make the European Central Bank (ECB) less likely to cut borrowing costs, even as the economy slows.

Chancellor Angela Merkel called for both sides to talk.

"(The goal must be) to have sensible negotiations... and for citizens to be affected as little as possible," Ms Merkel said at an event in the eastern city of Erfurt.

Airline Deutsche Lufthansa urged passengers to take the train and said it had been forced to cancel about 300 out of 1,850 scheduled flights disrupting some 18,500 passengers. Intercontinental flights were not affected.

"I have some sympathy for the strikes but I hope that my client does too," said Erik Hagens, whose flight to Vienna from Duesseldorf had been cancelled.

Staff at Frankfurt airport operator Fraport stopped work early yesterday and a Fraport spokesman said about 100 flights had been cancelled and there were some delays. Services would probably not be back to normal until today, he added.

A separate strike yesterday by Berlin transport workers brought subway, tram and bus services to a halt and combined with snow flurries to cause rush hour misery for thousands.

The GDL train drivers' union has also threatened strikes on passenger and freight services from next week, escalating a months-long spat with rail operator Deutsche Bahn.