Skoda Auto avoids second round of strikes
Workers at Skoda Auto, a unit of Volkswagen, reached agreement with management that wages would rise by 10 percent immediately, but overall wages including various benefits would grow by 12.7 percent through 2008.
Skoda workers staged a walk out on April 17, cutting the daily production of 2,500 cars by about a third. International Metalworkers’ Federation affiliate, OS KOVO, had threatened to strike again if a deal could not be reached.
Wage gains include:
- Wage increase by 10% for the period of April 1, 2007 to December 31, 2008;
- 2006 bonus of 10,000 CZK ($483.73 USD); this amount will increase by a percentage of profit increases in the next year;
- Incentive payment increase from 14% to 15%;
- Guaranteed company bonus (former 13th wage) increase by 10%;
- One-off payment of 2,500 CZK ($120.93 USD) in July 2008;
- Pension insurance contribution increased by 100 CZK ($4.84 USD) since April 1, 2007 and by another 100 CZK on January 1, 2008;
- Night work bonus of 20 CZK/hour ($.97 USD) also for overtimes during night since April 1, 2007;
- Bonuses increased from 350 to 450 CZK/month ($16.93 to $21.77 USD);
- Numbers of tariff employees with contract wages increase to maximum 850 in 2007 and maximum 1 000 in 2008;
- Severance pay increase up to 12 months of a workers’ average wage;
- Increase of loans for housing from 225,000 CZK ($10,883.91 USD) to 300,000 CZK ($14,511.88 USD);
- Difficult working environment bonus: 9 CZK/hour ($.44 USD); non-standard working environment bonus: 7 CZK/hour ($.34 USD) since January 1, 2007.
Skoda had sales of 203.7 billion CZK ($9.85 billion USD) last year and employees more than 27,000 workers.