PRAGUE -- Workers at Volkswagen's Czech carmaker Skoda will halt production on Saturdays in a dispute over pay, a trade union official said.
The unions have been calling for a 6 percent rise in pay while the company is only offering 4.3 percent, the trade union official, Milan Sprencl, said on Wednesday.
"There is no agreement and therefore meetings and protest events are being prepared," he said.
"Work on Saturdays is linked with (the plan for) a 6 percent wage increase so it will not resume until an agreement is reached."
Skoda is the largest Czech company by revenue and its production accounts for about 7 percent of overall Czech exports.
Revenue rose more than 18.1 percent to 8.7 billion euros in 2011 while car sales jumped 11.6 percent in the first two months of this year to 147,500 vehicles.
Last month, Skoda said it was well on its way to meeting its goal of producing at least 1.5 million cars a year by 2018, helped by new models and rising demand in the developing markets of India, China and Russia.
Sources: Reuters and Automotive News Europe