Dacia and Its Workers in Romania Finally Reach Agreement image

Dacia has finally reached a deal with its workers in Romania, after 14 negotiations attempts.

Today, April 16th, Dacia announced it has reached a final agreement with its workers from the Mioveni plant. The new agreement will increase salaries by 6% beginning with next month and a 384 euro for the performances reached last year. The workers’ initial demands were a salary increased with 109 euro and a 363 euro bonus.

Although the 6% increase was less than what the workers demanded and their vacation period wasn’t extended either, they had to be satisfied with the higher bonus. One main reason for which workers accepted the deal might be the fact that last week Dacia announced that it might transfer production to Morocco if solution is not found for pay conflicts in Romania.

In March workers at the Mioveni plant stopped production for two days, trying to convince the management to approve a 40% salary increase, instead of the initial 9% offered by the company. The strike caused Dacia, Romania’s largest exporter, a loss of 20 million euro ($26.1 million).

“If this protest will not end up reasonably and in a mutually beneficial manner and if employees will continue with unrealistic demands, there’s a greater probability to transfer an important part of production to Morocco. The advantage of the plants in Morocco is that an employee earns only 54% of a Romanian employee’s salary,” Automobile Dacia Vice-President Constantin Stroe said.