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Skoda Workers Prepare for Strike in Czech Republic

Union workers at Volkswagen AG’s Skoda factories in the Czech Republic have rejected an initial contract offer and are threatening to strike.
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Union workers at Volkswagen AG’s Skoda factories in the Czech Republic have rejected an initial contract offer and are threatening to strike.

Reuters says the unions dismissed the company’s proposal as “ridiculous.” Details weren’t released, but the unions say Skoda is offering to raise pay just enough to match the country’s 2% inflation rate. The proposal also would require workers to accept a new system of production scheduling.

Last year the carmaker, which accounts for about 60% of all vehicle output in the Czech Republic, boosted its global sales 7% to a record 12 million units. Skoda says its board will meet on Monday to discuss next steps in the labor talks.​​​

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