Real pay increase for Škoda workers

The Czech metal working union OS KOVO has reached agreement with the carmaker Škoda for an increase of 3.5% plus a one-off payment of 4,000 CZK (€146 or £100). With inflation currently 0.4% (April), this is a real pay increase of more than 3%.

The deal signed on 24 April runs for 12 months from 1 April 2015 until 31 March 2016.

Škoda, which is part of the Volkswagen group, has been making record profits. The firm employs some 25,000 people and it is the biggest car producer in the country.

As well as a pay rise, Škoda workers will get a 25,000 CZK (€915 or £655) bonus linked to last year’s profits.

The deal was settled after the union threatened strike action. Jarolav Povšik, the leader of OS KOVO in the company paid tribute to the “solidarity and effective support actions” of the union members in the company, which had enabled the union to secure an acceptable increase.