Automobile Dacia: "We cannot give a 51% raise because of losses"

The 550 RON fixed increase (51%) in addition to bonus increases and the profit-sharing condition, as requested by Sindicatul Automobile Dacia (Automobile Dacia Union – SAD), cannot be granted, the management says, because the company has 61 million euros in losses to recover. Liviu Ion, head of communications with Automobile Dacia, stated that losses worth 363 million euros were registered in 2000-2004, which have not been recovered yet, after profit in 2005-2007 stood at 302 million euros. The overdue 61 million-euro losses will therefore be recovered during this financial year. “Dacia’s profit was entirely reinvested in the plant and the annual investment average exceeds 200 million euros. In 2007, 4.6 million euros were invested to improve working conditions, with another 5.6 million euros to follow in 2008. Until then we are open to negotiations,” Ion added. Dacia’s profit in 2007 was put at approximately 150 million euros. SAD representatives stated that Dacia’s offer of a 18.5% increase for minimum wage employees and a 12% raise of the gross wage was unacceptable and the general strike that started yesterday morning would go on until the employer came up with a better offer. “We may maintain the strike for another 9 or 10 days, after which I believe Automobile Dacia will agree to another round of negotiations. Until then, the employees will show up for work but will not actually do anything,” Nicolae Pavelescu SAD leader said.