'Cheap' Czech Republic labour is to get a big pay rise at Hyundai Motor's car factory.
Workers assembling Tuscon, Elantra and ix20 at Nošovice will get an 12% pay rise this year, local management told Reuters which noted this was the latest big increase at a major manufacturer in Europe's tightest labour market.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to the report, citing Eurostat, Czech Republic unemployment of 3.4% is the lowest in the European Union and many companies have complained a labour shortage is pushing up pay.
Hyundai workers will get a 4.56% base pay increase this year and 4.66% next year while bonuses will account for the rest of the pay hike, Reuters said. In the previous collective agreement, wages rose an average 8%, including bonuses.
Hyundai's plant is one of three in the country.
The others are are a Toyota/PSA group small car building joint venture and Volkswagen's Skoda Auto, the country's largest exporter.
