BRATISLAVA -- PSA Group has agreed with trade unions on a 7.7 percent wage hike this year at its Slovak unit, the automaker said.
The raise follows an average 6.3 percent raise last year at the plant that produced more than 335,000 cars in 2017.
PSA, which makes Citroen C3 and Peugeot 208 cars at the plant, is one of the central European country's three automakers, along with Volkswagen and Kia. They together have a combined annual output of more than 1 million vehicles.
With unemployment in much of the central European region at or near record lows, Slovak wages have grown quickly and are expected to rise 3.3 percent this year in real terms after a 3.1 percent gain in 2017.
Slovakia's biggest automaker VW experienced a six-day strike last year that ended in a deal on a 4.7 percent wage rise from June 2017. Wages also rose another 4.7 percent in January 2018 and a further 4.1 percent in November 2018.
Jaguar Land Rover's Slovak plant is expected to come online this year, less than 60 kilometers (37.28 miles) from PSA's factory, adding to wage pressures in the tight labor market.