BUDAPEST -- Audi's Hungarian unit has reached an agreement on wage rises for the next two years with the local AHFSZ union.
Audi, one of Hungary's biggest revenue-earners and exporters, will increase base salaries by 30,000 forints ($103) as of January this year, and by another 30,000 forints from the start of next year. It will also raise other benefits.
Audi will also introduce a loyalty bonus from July, the union said in a statement posted on its website. It did not specify average salaries at the factory. The wage deal will be signed on Monday, it added.
A spokeswoman for Audi's Hungarian unit could not be reached immediately for comment.
Audi employs 11,631 people at a major plant in the western town of Gyor, which made 1.92 million engines and nearly 123,000 cars last year. Audi builds A3 compact sedan and convertible cars and TT sports-car models in Hungary at its plant, according to Automotive News Europe's European car assembly plant map.
Car production and export by foreign automakers is a key driver of economic growth in Hungary, where skilled workers are paid much less than their counterparts in western Europe.
Hungarians earned a gross 260,800 forints ($900) per month in the January-November period, according to official statistics, which compares with an average monthly salary in Germany of 3,612 euros ($3,838) in 2015.
A labor shortage is driving up wages in Hungary and Prime Minister Viktor Orban, who faces an election in just over a year, agreed with private sector employers on big hikes in the minimum wage last November.
The agreement by Audi workers follows a December deal with unions at rival carmaker Daimler's Hungarian factory that will see base salaries increase by 10 percent both this year and next.