BUCHAREST, Romania — Renault's Romanian carmaker Dacia and trade unions reached an agreement Monday on a 20.1 percent pay offer after weeks of negotiation.
Dacia offered workers an 170 lei(euro50; US$66) per month salary raise and a 30 lei(euro9; US$11) per month profit-sharing deal, averting a two hour-strike planned for Monday, state news agency Rompres reported.
Negotiations between the automaker and the union started on Jan. 5. Dacia had previously offered a 18.4 percent pay increase.
The company and trade union leaders are to sign the official agreement on Wednesday.
A previous pay deal expired Feb 2 and the union had demanded that a new offer should take into account a rise in productivity of 180 percent in 2006 and company profits of over euro100 million (US$130 million).
French Renault bought Dacia in 1998 and the Romanian plant proved highly profitable, with a 20 percent increase in sales in 2006.