Mercedes-Benz factory workers to strike again after talks fail

According to Reuters recently, on November 24, workers at the Mercedes-Benz factory in Kecskemét, Hungary, went on a two-hour strike, demanding higher wages and threatening to strike again if no agreement was reached.

Mercedes-Benz has more than 4,000 employees in Hungary. Last year, its annual vehicle production in the country reached 180,000 units, making it the fourth largest exporter.

Mercedes-Benz said in a statement that production at the plant continued as normal after "some workers" went on strike. Bela Balogh, president of the Vasas union, said 80 workers took part in the strike, which delayed the loading of 50 vehicles. "We also want to meet our production targets as long as we agree on a wage increase. But the strike committee remains in place and we are ready to strike again if necessary."

Vasas, the largest union at Mercedes-Benz Hungary and in the Hungarian auto industry, wants a 15 percent wage increase in 2017 and has rejected a wage deal reached between Mercedes-Benz and a smaller union.

"That agreement was not mature enough," Bela Balogh said, adding that the agreement reached recently by employers and the government and Mercedes-Benz's profitable business prospects provided more room for negotiation on salary increases.

The deal between employers and the Hungarian government includes lower corporate and payroll taxes, which the government says employers will need to boost wages in return to reverse an exodus of workers to wealthier EU member states.

"There will be a general demand for higher wages across the entire automotive industry," Balogh said. Other carmakers in Hungary include Audi and Suzuki.

In 2015, the automotive industry accounted for more than a quarter of Hungary's industrial output. Car exports and production are one of the key drivers of the country's economic development. The wages of Hungarian skilled workers are significantly lower than in other Western European countries.

Daimler's German workers, who are paid relatively high wages and went on strike earlier this year, saw their metal and electrical engineering salaries rise 4.8 percent in May.

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