Friday, March 21, 2008

Renault’s Romania Workers To Strike

20 March 2008
Bucharest _ Thousands of workers at Romania’s Renault-owned Dacia car maker, will go strike demanding a 50% pay rise, a union said Thursday.

Trade unionists say wages are low given the productivity of the workforce and the profit that each employee generates.

"Negotiations with the management have failed, our strike involving more than 80 percent of the 13,000 workers will begin on March 24. Production will stop," Ion Iordache, a leader at the Dacia trade union told the Reuters news agency.

He said Dacia workers earn around 1,070 lei (€ 286) as basic salary on average a month, before tax. They are demanding a pay rise of 550 lei a month in 2008.

Dacia officials were not immediately available to comment.

Average net wages in Romania jumped 30.7 percent year-on-year in nominal terms in January to 1,200 lei.

The country is an attractive location for carmakers attracted by cheap labour, relatively low taxes and prospects for fast productivity growth.

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