PRAGUE -- Unions at Skoda have withdrawn from a deal on flexible working shifts, adding pressure on the Czech automaker as they seek a double-digit pay raise and threaten strikes.
Union leaders said in a statement more shift agreements could be cancelled if wage talks broke down.
Unions have said they could call a strike in May if no deal is agreed and said on Wednesday they would seek a 14 percent wage rise for the next 12 months.
Last week, they rejected management's offer of a 10 percent increase.
Skoda, the Czech Republic's biggest exporter, has blossomed under nearly 30 years of Volkswagen Group ownership to become one of the group's profit drivers, even beating luxury sibling brand Audi's operating margins last year.
Strikes are a rare event in the central European country whose economic growth is propelled by the car sector.
With strong growth in recent years and unemployment dropping to its lowest level in two decades, wages have been rising rapidly across sectors, putting pressure on employers.
Skoda builds the Fabia, Karoq, Octavia, and Rapid models in the Czech Republic alongside the Seat Toledo, according to Automotive News Europe's European assembly plant map. A Skoda EV is also due to start production in Mlada Boleslav in 2020.