Skoda Auto Employees Are About to Stop Production on Saturdays image

The employees from Czech car maker Skoda Auto will stop working on Saturdays due to a pay dispute.

The dispute is over the fact that the workers have requested a 6% pay rise and the company is offering only 4.3%.

“There is no agreement and therefore meetings and protest events are being prepared. Work on Saturdays is linked with (the plan for) a 6 percent wage increase so it will not resume until an agreement is reached, ” the trade union official, Milan Sprencl.

In March 2011 the employees from the same company were about to go on strike over the same matter. Unions had asked for a 7% rise, with the company originally offering 0.5%. On March 31st the company agreed to offer them a 4% wage increase, plus a one-off performance bonus, plus some other bonuses. The dispute began after hearing that bonuses had been paid to workers in other factories owned by parent company Volkswagen.

Skoda, which is the largest Czech company by revenue and its production representing 7% of all Czech exports, saw its revenue rose over 18.1% to 8.7 billion euros in 2011. In the first months of 2012 the company reached car sales of over 11.6% to 145,500 units.