PRAGUE, March 28 Workers at Hyundai Motor Co's
Czech car factory will get on average a 12 percent
pay rise this year, local management said on Tuesday, the latest
big increase at a major manufacturer in Europe's tightest labour
Unemployment in the Czech Republic is the lowest in the
European Union at a rate of 3.4 percent, according to Eurostat,
and many companies have complained of a labour shortage which is
pushing up pay levels.
Wages have also been a key indicator for the central bank as
it nears an end to a cap on the crown that has been in place
since late 2013 now that inflation is back on target. It
forecasts nominal wage growth of 5.2 percent this year and 4.9
percent next year.
Hyundai workers will get a 4.56 percent base pay increase
this year and 4.66 percent raise next year while bonuses will
account for the rest of the pay hike. In the previous collective
agreement, wages rose on average by 8 percent including bonuses.
The car industry is an important contributor to the
export-reliant economy and Hyundai's plant is one of three in
the country of 10.6 million.
A joint venture of Toyota and Peugeot
also operate a plant while the biggest is Skoda Auto, a
subsidiary of Volkswagen, the country's largest
Skoda workers negotiated to get record bonuses of up to
90,000 crowns ($3,614.75) for this year.
($1 = 24.8980 Czech crowns)
(Reporting by Jason Hovet; Editing by Greg Mahlich)