RPT-Czech VW unit Skoda Auto workers walk out over pay

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By Jan Korselt

MLADA BOLESLAV, Czech Republic, April 17 (Reuters) - Workers at the Czech Republic's largest company, Volkswagen's Skoda Auto, walked out on strike on Tuesday to back a pay claim above the company's offer of about 12 percent over two years.

Paint shop workers downed tools at 6 a.m. (0400 GMT) and the strike later spread to other departments to maximise the impact on production while keeping as many workers as possible on the job.

"All main operations will be affected by the work stoppage, the paint, press, welding and both assembly shops," said union representative Vladimir Kment.

"Lost production will oscillate somewhere between a third and half of the daily output," he told Reuters outside the gates of Skoda's main factory in Mlada Boleslav, 60 km (38 miles) north of Prague. Skoda makes around 2,500 cars per day.

Skoda says it is ready to raise base wages by 7.5 percent this year and 3 percent next year. It is also offering to raise various benefits for an overall pay increase of about 12 percent over two years.

The unions have demanded more, plus a guarantee that a significant pay hike this year is followed by another in 2008 to match inflation, which has hovered below 2 percent in recent months but is expected to creep higher.

"The strike has been going perfectly, we supported it and the unions, because their demands are right," said one worker who only introduced himself as Lukas. "We must not allow being exploited forever."

There have been few strikes in the Czech Republic in recent years and unions at a number of other firms are watching Skoda to see whether they can also pressure their employers for a larger share of profits in the fast expanding economy.

TALKS DUE ON WEDNESDAY

Union leaders said they would interrupt the strike on Wednesday for talks with management.

A Skoda spokesman told reporters that management would be ready to meet union leaders on Wednesday but did not announce any change of the management's offer.

"The company leadership has been saying all along that it wants to reach an agreement so both sides are satisfied and the possibilities of investments in the Czech Republic is maintained," spokesman Jaroslav Cerny said.

Skoda is the largest Czech company with sales of 203.7 billion crowns ($9.88 billion) last year and more than 27,000 employees. It is the country's largest exporter and a key customer for dozens of parts makers.

Manual workers on average are paid 22,000 Czech crowns ($1,066) per month, 10 percent above the national average but a fraction of wages at Volkswagen's plants in Germany.

($1=20.62 Czech Crown) ($1=20.64 Czech Crown)

Keywords: SKODA STRIKE/