Renault's Dacia output halted by pay strike in Romania
Workers build Dacia cars on a production line at the automaker's plant in Mioveni, Romania.
Photo credit: Reuters
BUCHAREST (Reuters) -- Renault's Dacia unit stopped production at its Romanian factory as employees went on strike in a dispute over pay.
"We're negotiating on the collective work agreement," Anca Oreviceanu, a Dacia spokeswoman, said when asked about the strike. "We don't know the impact on production yet."
Local media reports said striking employees at the plant in Pitesti, 120km northwest of Bucharest, are seeking a 25 percent pay increase. The average monthly gross pay at Dacia was 3,700 lei (836 euros) last year, which compared with a national average of 2,100 lei.
Trade unionists were not immediately available to comment.
Dacia is the country's largest exporter, accounting for roughly 3 percent of gross domestic product, with more than 90 percent of output sold abroad. Romania's economy, the EU's second-poorest, grew 0.3 percent last year and is expected to rise by 1.5 percent this year.
Hit hard by the world economic and financial crisis, Romania was plunged into a deep recession in 2009 and had to turn to the International Monetary Fund for help.
Dacia's low-cost vehicles have proved popular in austerity-hit European markets and sales have grown strongly in comparison with Renault's core brand, which continues to lose market share in the region.
Last month, Dacia sales in EU and EFTA countries rose 15.4 percent, according to data from industry organization ACEA, while sales of the Renault brand dropped 14.8 percent.
Dacia sold about 360,000 cars worldwide last year, up 4.8 percent from 2011.
Automotive News Europe contributed to this reportContact Automotive News