Romania: a new collective agreement for Ford Craiova in a bid to preserve jobs

Together, the trade union and management at the Ford Romania plant in Craiova have agreed on a new collective labor agreement, to run for the next two years. Whilst management had been targeting a 10% reduction in remuneration the new agreement actually keeps salaries at levels close to those of 2015. Nonetheless the agreement does change the bonus system, overtime pay and partial employment. In exchange management committed to raising production at the plant, which has experienced several periods of furloughing as well as losing 680 jobs in 2015.
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Wages at the plant will increase by 1% from June 1, 2016 and by 1.5% from June 1, 2017. In addition, there will be one-off bonuses of 4% of the yearly wage in 2016 and 3% of the yearly wage in 2017 replacing the previous 5% monthly bonus that were paid according to targets and individual performance. From June, employees working overtime will be given a choice between 90% of the normal hourly rate or compensation in terms of time-off. In addition furloughed workers will be paid 78% of their nor

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