Romanian car maker Dacia, majority owned by Renault, reportedly averted a general strike on Monday when workers accepted by a 20% pay rise.


Workers had demanded a 26% increase, according to Reuters. “We reached a deal with the board for a pay rise of a little above 20% and the conflict is closed,” Ion Iordache, trade union leader, was reported to have told private television Antena 3.


Dacia said in a statement cited by the news agency the conflict was closed and that it approved plans to raise wages gradually by up to 20.2% by July.


Reuters noted that many foreign investors have flocked to Romania, attracted by cheap labour, low taxes and prospects for fast productivity growth, but analysts have said that wage pressures have started to drive some manufacturers to move production to poorer countries in the region, such as Ukraine.