Tuesday, February 27, 2007

AP: Dacia, Unions Reach Pay Offer Agreement

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.

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