Renault has turned the factory in Romania into a money making machine and can not afford higher costs. The production was brought to a halt for three days now.
The Union at Dacia could never receive the 150 euros wage raise as Renault group faces the largest cost reducing campaign in its history.
The factory had a larger income margin that Nissan and Renault while, as a paradox, having produced the cheapest model in the group’s portfolio. And Renault, the main investor at Dacia, is still bidding on the Romanian factory in order to raise its profit.
The costs of bringing up the wages at Dacia are of about 23 million euros per year, according to EVZ’s calculations. These costs are now equal with the losses the factory has registered during the first two days of general strike.
The total amount requested by the workers would boost the wages by about 64%, according to the company’s officials.
The company’s administration refuses to satisfy the worker’s requests, considering the wages have doubled during the past four years.