Wage deal averts strike at Skoda

PRAGUE (Reuters) - Skoda Auto, the Czech unit of Germany's Volkswagen, has agreed a wage deal with its trade union and avoided a major strike at the country's largest company. Trade union spokesman Jaromir Cvrcek told Reuters on Monday that a 7 percent pay rise was agreed, above Skoda's original offer of less than 3 percent but less than the 10 percent demanded by the union.

The company made the compromise offer on Friday. The country's leading exporter later issued a statement confirming the deal. The wage rise is in line with levels seen elsewhere in the Czech economy.

The old collective agreement expired on Thursday and the new one, which still must be officially signed, is for two years. Skoda said the signing would take place on Wednesday.

Skoda's union members staged a one-hour wildcat strike on Wednesday and threatened to strike for 24 hours if no deal was reached.

They criticised the profitable car maker for keeping wages at the lowest level in the Volkswagen group, despite a sharp jump in Skoda's productivity.

Skoda Auto's 20,900 workers had an average monthly wage of less than $1,000 (530 pounds) last year, sharply below the group's average.

The car maker is planning to expand domestic production facilities this year to launch a new, large family model based on Roomster prototype.