Skoda Increases Salaries

As the economic crisis keeps on taking its toll on the entire world and more and more people see their jobs cut, slashed, thrown away, Skoda representatives, together with Metalworkers' Federation KOVO and Independent labor unions Škoda reached an agreement on increasing wages for the company's workers. We don't find this as being a bad thing. It's just...surprising.

„Even nowadays, at the time which is strongly affected by the financial crisis and instability of world markets, and despite considerable burdening of company's budgets, we want to provide our employees, whose work we value highly, with continuous support and motivation", said Klaus Dierkes, Board member responsible for human resources management.

The wage increase plan is comprised of three stages, set to be applied starting April 1st and ending October 1st. The first increase will add an extra 3 percent to the existing tariff wage, while the October increase will bring an extra 1.8 percent growth. In addition, all Skoda tariff employees will receive a single CZK 2,000 (70 euro) payment by the beginning of March 2009.

In 2007, the company introduced a bonus system which consists of both a quarantined and a variable component. The guaranteed component includes an end-of-year bonus that will be maintained in 2009, despite impacts of the financial crisis.

The wage increase is not much. Neither is the single payment employees will receive. It is, however, a courageous think to do in this unsure climate. Let's hope Skoda doesn't see fit later this year to fire a few people to cover up unforeseen budget holes.