PRAGUE -- Workers at Hyundai Motor Co.'s Czech plant will get on average a 12 percent pay raise this year, local management said on Tuesday, the latest big increase at a major manufacturer in Europe's tightest labor market.
Unemployment in the Czech Republic is the lowest in the European Union at a rate of 3.4 percent, according to Eurostat, and many companies have complained of a labor shortage which is pushing up pay levels.
The car industry is an important contributor to the export-reliant economy and Hyundai's plant is one of three in the country of 10.6 million people.
A joint venture of Toyota and PSA Group also operate a plant while the biggest is Skoda, a subsidiary of Volkswagen Group, the country's largest exporter.
Hyundai builds i30, ix20, ix35 and Tucson models at the plant in Nosovice, according to Automotive News Europe's European car assembly plant map.
Hyundai workers will get a 4.5 percent base pay increase this year and a 4.6 percent raise next year, while bonuses will account for the rest of the pay hike. In the previous collective agreement, wages rose on average by 8 percent including bonuses.
Skoda workers negotiated to get record bonuses of up to 90,000 crowns ($3,614.75) for this year.