* Fifth round of regional talks end with no deal
* Regional union says to recommend strikes from next week
* Employers say new union proposals were not negotiable
* Major sticking point is demand for right to shorter hours (Adds employers' association comment, background)
STUTTGART, Jan 27 (Reuters) - A regional German union called on Saturday for all-day strikes at industrial companies across the country from next week after overnight talks over higher wages and the right to shorter hours ended without agreement.
Powerful German union IG Metall had said on Friday it would hold off on its threat to call all-out strikes to hold last-ditch talks with employers in the southwestern state of Baden-Wuerttemberg, home to companies such as Mercedes-Benz maker Daimler and sports car firm Porsche .
But the fifth round of talks ended without a deal on Saturday, and the regional IG Metall chapter said it would recommend that the union's national leadership call for all-out strikes from next week.
Stefan Wolf, head of the Suedwestmetall regional employers' association in Baden-Wuerttemberg, said IG Metall had made new proposals in the fifth round of regional talks on Friday night that were not negotiable, and warned wider industrial action would cause great financial damage to German companies.
"I am speechless about the fact that good comprises and solutions that we had already found have been taken off the table again after such long negotiations," he said.
National employers' association Gesamtmetall said it expected IG Metall to call all-day strikes next week, adding it would examine its legal options.
Emboldened by the fastest economic growth in six years and record low unemployment, IG Metall is demanding a 6 percent pay rise for 3.9 million metals and engineering workers across Germany.
A big sticking point in the talks has been a union demand that workers should have the right to reduce their weekly hours to 28 from 35 to care for children, elderly or sick relatives, and return to full-time employment after two years.
Employers have so far offered a pay rise of 2 percent plus a one-off 200-euro ($245) payment and have rejected demands for a shorter working week unless employers are allowed to increase hours temporarily as well.
More than 900,000 workers have taken part in industrial action so far this year in support of IG Metall's wage claims. Any deal in Baden-Wuerttemberg would typically be applied in other states as well. (Reporting by Ilona Wissenbach; Writing by Maria Sheahan; Editing by Mark Potter)