Wage Agreement Concluded At Skoda Auto

MLADA BOLESLAV, Czech Republic – February 18, 2009: The representatives of Škoda Auto, Metalworkers' Federation KOVO and Independent labor unions Škoda agreed through collective bargaining on increasing wages between January 1, 2009 and March 31, 2010, which is to be carried out gradually in three phases.

„Even nowadays, at the time which is strongly affected by the financial crisis and instability of world markets, and despite considerable burdening of company's budgets, we want to provide our employees, whose work we value highly, with continuous support and motivation", said Klaus Dierkes, Board member responsible for human resources management.

From April 1, 2009, the existing tariff wage component will be increased by 3 % and, from October 1, 2009, by another 1.8 %. For the period between January and March 2009, all tariff employees will be rewarded with a single payment in the amount of CZK 2,000.

In 2007, for the first time in history, the company introduced a company bonus system, which consists of a guaranteed and variable component and which is more closely linked to employees' performances. This guaranteed component also includes an end-of-year bonus, which is going to be preserved in 2009 despite impacts of the financial crisis.

Average wages in the Škoda Auto company are long-lastingly above the Czech average wage and, furthermore, the company provides its employees with other social advantages and benefits, for example with a contribution to supplementary pension plan, which increased by CZK 50 to CZK 550 per month starting from January 1, 2009.