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4 months ago
Hyundai's Czech car workers get big pay rise as labour market tightens
March 28, 2017 / 9:10 AM / 4 months ago

Hyundai's Czech car workers get big pay rise as labour market tightens

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The logo of Hyundai is pictured at at the 37th Bangkok International Motor Show in Bangkok, Thailand, March 22, 2016.Chaiwat Subprasom/File Photo

PRAGUE (Reuters) - Workers at Hyundai Motor Co's (005380.KS) 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 market.

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 (7203.T) and Peugeot (PEUP.PA) also operate a plant while the biggest is Skoda Auto, a subsidiary of Volkswagen (VOWG_p.DE), the country's largest exporter.

Skoda workers negotiated to get record bonuses of up to 90,000 crowns ($3,614.75) for this year.

Reporting by Jason Hovet; Editing by Greg Mahlich

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