Union at Skoda Auto agrees with 12 percent wage increase offer

Union representatives at Volkswagen-owned Skoda Auto stated on Friday they had accepted management’s offer to increase wages by 12 percent, averting a strike at one of the largest manufacturing plants situated in the Czech Republic.

The leadership of the Kovo union, which represent industrial employees, prepares to vote on the proposal next Wednesday, which would cover the duration from April 1, 2018 to the end of March 2019, although that is observed as a formality. The offer also consist of increases in bonuses and incentives.

Czech wages have been increasing rapidly across sectors, putting pressure on workers, following strong economic growth in these years and a decrease in unemployment to its lowest level in 20 or more years.

Skoda, the country’s biggest exporter, has increased under almost 30 years of Volkswagen ownership to become one of the group’s profit drivers, even beating operating margins at luxury brands such as Audi and BMW last year.