Skoda's Union Problems

Skoda Auto is a major subsidiary of Volkswagen andto reach an agreement by end-March."
recipient of quality Volkswagen parts such as VWOn March 19, 2007 the first information meeting will be
cold air intakes. The VW cold air intake boosts theheld at the welding plant and will cause the plant to fall
vehicles' capacity to provide more power even forsort by 30 cars according to Povsik. The unions plan
long extended drives. The Skoda is also the uglyto organize a total of sixty meetings before March 22
duckling turned swan brand of Volkswagen. It used toand that will include meetings even on night shifts.
be the laughing stock in the automotive world. But duePovsik said, "We will explain our demands to people.
to the ingenuity and remarkable management ofWe see the wage growth that the company
Wolfsburg-based automaker, Skoda has turned intoproposes to us is too low, considering its record results.
one of its most profitable brands. And presently is oneWe also reject the new wage system that the
of the cash cows of Volkswagen together with Audi.company proposes, as it does not guarantee a wage
Skoda Auto is presently having problems with its workgrowth for all employees."
unions and according to union head Jaroslav Povsik inIt was last February 8 when the unions and the
an interview with CTK recently they will organizemanagement first presented their wage proposals.
information meetings next week to support their wageVolkswagen's Skoda Auto proposed a 6.1 percent
demands.wage increase for the period between April 1, 2007
And in the event that no agreement is reached, theand March 31, 2009. On the other hand, the unions
unions are prepared to organize a general meetingwant an increase for only one year covering until
with one-hour token strikes in all three shifts, PovsikMarch 31, 2008 and want a 17 percent growth on
added. Aside from that, the unions is also planning toaverage.
launch a strike for an indefinite period of time thisCurrently the average monthly wage of the car maker
coming April. There were already four rounds ofexcluding managers' wages is between Kc22,000 and
bargaining agreements that have already taken placeKc27,000. The average monthly wage in the Czech
at the Skoda Auto but unfortunately with no positiveRepublic stands at around Kc20,000. The workforce
results. Both parties have agreed to set their deadlineat Skoda Auto has increased by 700 to 26,728 for the
on March 31 to finalize their agreement regarding thenext two years.
current wage contract that will expire on that date.Last year Skoda Auto has obtained an increase in
Martin Jahn, Skoda HR director in an interview withsales by 11.7 percent to 550,000 cars. Its recorded net
CTK said, "We are halfway through the talks, there isprofit increased by 40 percent to Kc11.06bn.
absolutely no reason for protest meetings. Our goal is