Hungary: AHFSZ union nears the two-year Audi wage deal

German automaker Audi’s Hungarian unit has reached an agreement on wage rises for the next 2 years with the regional AHFSZ union, which revealed the deal on Friday.

Automobile production and export by foreign car manufacturer is a crucial driver of financial development in Hungary, where skilled workers are paid much less than others in western Europe.

Audi, among Hungary’s most significant revenue-earners and exporters, will boost base pay by 30,000 forints ($103) as of January this year, and by another 30,000 forints from the beginning of next year. It will likewise raise other benefits.

Hungarians earned a gross 260,800 forints ($900) each month in the January-November duration, according to official stats, which compares with an average month-to-month income in Germany was 3,612 euros ($3,838) in 2015.

The automaker employs 11,631 individuals at a significant plant in the western town of Gyor, that made 1.92 million engines and nearly 123,000 cars in 2015.

Audi will likewise introduce a loyalty bonus from July, the union stated on its website. It did not define average incomes at the factory. The wage deal will be signed on Monday, it included.