BUCHAREST/PARIS (Reuters) - Workers ended a 19-day pay strike at Renault's Dacia plant in Romania on Friday after management decided to raise employees' wages by around 23 percent, on average, in 2008, the company said on Friday.

"We signed the agreement ... work at the plant resumed at 1 p.m. (1000 GMT). We hope to reach normal output levels on Monday," Liviu Ion, Dacia communication manager, told Reuters.

Dacia is the maker of the no-frills Logan model series of cheaper cars developed for emerging markets but which also became a run-away success in western countries. The Logan has played a big part in Renault's bid to boost overall sales in the world and is now made in many countries.

Renault (RENA.PA: Quote, Profile, Research) has teamed up with India's Bajaj Auto (BJAT.BO: Quote, Profile, Research) to make an even cheaper car after Tata (TAMO.BO: Quote, Profile, Research) threw down the gauntlet with the 1,700-euros ($2,689) Nano.

Toyota Motor (7203.T: Quote, Profile, Research) on Friday announced it would also make a cheap vehicle for the Indian market.

Dacia's Ion said management will raise monthly wages by around 435 lei ($191) before tax this year.

Dacia workers on average earn 1,900 lei a month.

Renault shares closed 0.2 percent lower at 65.78 euros.

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