BELGRADE (Serbia), June 30 (SeeNews) – Serbia's Confederation of Autonomous Trade Unions said the main suppliers of FCA Srbija, a joint venture of Italy's Fiat Chrysler Automobiles (FCA) Group and the Serbian government, halted production due to a strike of the employees of the carmaker.
The production factories of high-tech car components maker Magnetti Marelli and seats producer Adient in Kragujevac remained closed due to the strike of the FCA Srbija employees which started on Tuesday, the trade union said in a statement on Thursday.
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The employees of Magnetti Marelli and Adient will receive 65% of their wages for the days during which the factories remain closed, the trade union said.
The factory of Serbian car parts maker PMC Automotive in Kragujevac, in turn, operates at lower capacity, the trade unions confederation noted.
The employees of FCA Srbija demand an increase of the basic salary at the company to 45,000 dinars ($425.8/373.2 euro) from 38,000 dinars and regular payment of the agreed bonus for this year and 2018, the trade union said earlier this week.
Serbia's labour inspection agency ordered the management of FCA Srbija to start negotiations with the trade unions on their demands on June 26, but the company denied to launch them, which represents a violation of the strike law, the Confederation of Autonomous Trade Unions in a separate statement on Thursday.
The increase in the basic salary of FCA Srbija's employees to 45,000 dinars would cost the company only 0.5% of its annual profit, the trade union said.
FCA Srbija is the biggest foreign industrial investment in Serbia. The joint venture company is the biggest Serbian exporter, with some 1 billion euro ($1.1 billion) in exports in 2016.
Italy's Fiat Chrysler Automobiles (FCA) Group controls 67% of the capital of FCA Srbija through its subsidiary Fiat Group Automobiles (FGA), while the Serbian government owns the remainder.
(1 euro = 120.538 dinars)