Skoda does not expect to repeat the wage growth

Skoda Auto does not expect to repeat the strong wage increase agreed in 2018 again in the recent round of collective bargaining, a board member said on Wednesday.

Skoda is a Volkswagen’s Czech unit.

“The current situation in the automotive industry, as well as the pressure regarding costs and investments, are primarily the result of legal changes and regulatory measures,” stated Bohdan Wojnar, who is responsible for Skoda’s human resources, at its annual results news conference.

“Against this backdrop it is clear that we cannot allow results similar to that of 2018 in this year’s collective bargaining,” Wojnar added.

The average production wage increased 14 percent in last year and it is up by 25 percent in the last two years, Skoda stated.