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1 of December, 11:26

Strike-hit Ford Russia plant set to resume two-thirds output
Ford Russia, whose workers have been on a strike since last week, said on Friday it is preparing to resume production to two-thirds of capacity following a meeting with the plant`s trade union.

Around 1,000 workers at the factory near St. Petersburg halted production on November 20 demanding a 30% wage increase. By Thursday around 600-700 workers had crossed the picket line and production had been resumed for one out of the usual three shifts.

"The factory is preparing to launch two-shift production. I cannot say when for sure, but there are at least enough people to fill the second shift," said the plant`s press secretary, Yekaterina Kulinenko.

She said the Ford Russia management had met with the trade union to discuss the workers` demands.

"The trade union will think over the issue discussed at today`s meeting and the company`s proposals at the weekend so that talks can continue on Monday," the spokeswoman said.

Trade union chief Alexei Etmanov said earlier in the day that there are currently around 300 workers in the picket line but that their number could double.

The plant employs 2,200 personnel and produces 300 cars each day; the trade union earlier said the strike had led to lost production of 2,500 vehicles.

Average wages at the U.S. auto giant`s sole Russian plant are about 21,000 rubles ($860) a month, according to the factory administration.

A previous dispute between management and employees was resolved after a one-day strike in March 2007, when the plant administration made concessions, concluding a new collective labor contract providing higher wages and increased employment benefits.

About $230 million has been invested in the Russian plant since the production of Ford Focus models started in 2002.

Ford plans to increase output from the current 72,000 cars to 100,000 cars a year by 2009. The carmaker also plans to launch the production of up to 25,000 Mondeo models a year.

sections: Society, Region News
regions: North-West region

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