Romanian Car Maker Dacia Employees Announce Labor Conflict, Demand Higher Salaries

Negotiations between the management and employees of Romanian carmaker Automobile Dacia have failed, so union leaders have announced a conflict of interest and presented their demands regarding the collective labor contract for 2010.

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Dacia union vice-president Ion Iordache said Tuesday morning that the main demand is a 520 lei (EUR1=RON4.1325) salary increase for all employees, starting January 1, while the management's offer was RON170 to be paid in three installments - in January, April and September.

Iordache said the increase is fair given the factory's good results in 2009 and its favorable forecast for this year. The union leader said that if the management's response is not satisfactory, the territorial employment agency will be called in to mediate a new round of talks. Failing that, workers are prepared to start strike procedures, Iordache said.

In the spring of 2008, Dacia's employees went on a strike which lasted around three weeks.

Automobile Dacia, part of the French Renault group, sold 311,282 cars last year, up by 20.5% compared to 2008, but sales in Romania dropped by more than 50% to 41,862 cars, although the company succeeded in slightly increasing its share of the local market.

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