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Might actually work in our favour .. Workers looking for 25% increase in wages ... Des this mean soaring prices ... Our cars could still be worth what we paid for them next year ;)
 

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Discussion Starter · #4 ·
Might actually work in our favour .. Workers looking for 25% increase in wages ... Des this mean soaring prices ... Our cars could still be worth what we paid for them next year ;)
Lets look;

In India I cant find anything on Dacia wages, but there is this item on the suzuki indian subsidiary;

After a year disrupted by labour unrests at its Manesar facility, the country's largest car maker Maruti Suzuki India Limited (MSIL) has hiked wages by 50% for workers at its Gurgaon unit.

According to the wage settlement agreement signed between the company and the Gurgaon-based Maruti Udyog Kamgar Union (MUKU), permanent workers at the Gurgaon unit would be given an increment of Rs 18,000 in their monthly salary spread over a period of three years. The wage agreement is effective retrospectively from April 1, 2012.

So basically they are currently getting £219 per month, but will have a rise to £438 per month over three years. I have to assume the Dacia workers are getting nearer the bottom end of that scale but Dacia will face the same inflationary pressures.

In Romania the workers are in this position;

Four years ago, in March 2008, approximately 10,000 of the 13,000 employees at the Dacia plant in Pitesti, began an indefinite strike. Their demands at the time included an increase to their wages of between 50 and 70 percent. It was the biggest industrial action in the private sector in Romania since the introduction of the capitalist market in 1990.

After the unions isolated and suppressed the strike, Dacia agreed to a wage increase of around €100 a month. As a result, the average salary at the plant is currently between €350 and €400 a month.

This means that the Romanians are on between £70 and £85 per week ( with current exchange rates) and would go up to between £85 and £100 per week if they got their 25% increase ( which is unlikely!)

Indians are on about £55 a week, but if they are in the suzuki plant they will be on £100 a week in three years time and as well off/ better off as expensive or more expensive than the the Romanians.

Except for the transport costs back to Europe. Interesting that perhaps Indian workers are on the cusp of being better paid than european ones!!

You guess is as good as mine as to whether Dacia will withdraw its plant from Romania rather than back down to strikers.

In the short term, there would appear to be nowhere to relocate that is cheaper, so they might as well pay up and stay, but the disruption to production if the workers feel that they can get more and more over the years by regular disruption to productivity may make it seem expedient to make the move, both to ensure stability, and to encourage other production markets that they don't bluff and will pull out.

This suggests to me that the Duster is at an unsustainably low price at the moment, and from a purely selfish point of view we could be getting a once in a lifetime bargain.

On the other hand my socio-liberal conscience is feeling a little guilty, having had an insight to the lives of people who are making it possible for us to get that bargain.

And with the way the world is going , it is not beyond the realms of possibility that in 25 years time , we will be the low wage subsistance labour market which is servicing the disposable income of China, the Indian sub continent, and the mineral rich nations like Russia and Malasia.

As The Who said " Hope I die before I get old" ( but only 50% of them did!)
 

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You guess is as good as mine as to whether Dacia will withdraw its plant from Romania rather than back down to strikers.
Dacia is a Romanian company/brand like Skoda which is Czech. This scenario is absurd and doesn't make sense.
 

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Discussion Starter · #8 ·
This talks about Renault moving the operation to Morocco because of cheaper labour costs.

http://www.wsws.org/en/articles/2013/02/16/roma-f16.html?view=print
Some of the figures dont match up in this. It says

The labour costs in Morocco, averaging around €4 (US$5.35) per hour, are only about half as high as the going rate in Romania.

This would make the rate in Romania 8 Euros an hour (assume they work 40 hours a week =160 hours a month = 1240 euros a month.

Then it says;

Dacia (Romania) agreed to a wage increase of around €100 a month. As a result, the average salary at the plant is currently between €350 and €400 a month.

That makes the Romanian rate only 2 Euros an hour, or half the rate in Morrocco, not the other way round as the first paragraph states.

Damn these socialists, their maths almost makes George Osborne look competent!
 

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Discussion Starter · #9 ·
Dacia is a Romanian company/brand like Skoda which is Czech. This scenario is absurd and doesn't make sense.
But Skoda is owned by VW who could transfer the production anywhere it likes if the czechs get bolshie.

Same as Jaguar and Landrover, some of which are produced in Pune India, and Land Rover production will soon start in China ( Tata owns them)

Lotus is owned by Proton and they are to produce their new Hybrid in Malasia.

VW makes the majority of its Jettas in Mexico, China, South Africa, India, Russia, and Algeria. because of labour costs. Never mind yer "versprung dorch techik", its yer deutche marks innit!! (whoops euros...but it doesn't work so well)

So I don't see whats so implausible about Dacia production being transfered anywhere its French owners want, despite its Romanian origins.
 

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Yeah, I know that. Dacia already has factories in Morrocco and Turkey but it would be absurd to leave it's home ground, the Romanian government will not accept that, Dacia is the main exporter of the country and I suspect the contract, when they bought the company, wouldn't permit that.
 

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Would we pay an extra £500 so that Dacia Romania employees get a fairer wage? I would.
 

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Discussion Starter · #12 ·
Yeah, I know that. Dacia already has factories in Morrocco and Turkey but it would be absurd to leave it's home ground, the Romanian government will not accept that, Dacia is the main exporter of the country and I suspect the contract, when they bought the company, wouldn't permit that.
I know what you mean.... does that imply that the British government is a wimp becuase it has accepted transfer of british marques overseas, or was it just contractually incompetent?

If you own the brand with no conditions though you can take it anywhere.

Basically you close the company down and start a new one somewhere else using the name, even on a different product! As long as you have a market for the brand and continuity, it is practical.

(On 12 July 2012 Nikolay Smolensky confirmed a permanent end to TVR car production, stating that costs were now too high and customer demands too low for the business to operate profitably. The TVR name is now likely to be used on a new line of portable wind turbines).

But if the Romanian Government did have conditions on the sale of the brand, the Duster has sold equally well under the Renault Brand as the Dacia.....would you cancel your order if it came with a Renault badge instead of a Dacia one?
 

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Renault is making some market share with the rebadged versions on markets that it had catastrophic sales (Russia, South America). At first, they were thinking to sell them with the Renault badge in EU also but decided to use Dacia like WV did with Skoda.

Things with Dacia are a bit different than British car makers because Dacia was a national company, owned by the Romanian State it was not a private business.

http://en.wikipedia.org/wiki/Automobile_Dacia for some info on the company.
 

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their maths almost makes George Osborne look competent!
I think that counts as a true miracle................ my eyes have been opened! Praise be!!!

Nah.... not gonna happen. :)
 

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Discussion Starter · #15 ·
Renault is making some market share with the rebadged versions on markets that it had catastrophic sales (Russia, South America). At first, they were thinking to sell them with the Renault badge in EU also but decided to use Dacia like WV did with Skoda.

Things with Dacia are a bit different than British car makers because Dacia was a national company, owned by the Romanian State it was not a private business.

http://en.wikipedia.org/wiki/Automobile_Dacia for some info on the company.
You mean like British Leyland was a state owned company ( owned the mini, rover, landrover morris etc) so they couldn't be produced overseas once sold on?

I see.

I think the morris minor was produced in India for decades after it was extinct here.
 

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Just been told this wont effect us in the UK!

Our cars are made in Indian where the Micra is made so we will be fine :)
Dusters are but Stepway's, sanderos
and (i presume) Logan's (will be) are built in Pitesti, Romania & casablanca, morocco (Am i correct in thinking the rhd versions are only from pitesti?)
 
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