Renault in Turkey offers concessions to striking workers

Sun May 24, 2015 2:17am EDT
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(This May 23 story has been corrected in paragraph 3 to clarify that the company will announce results of financial improvement studies, not pay adjustments, before Ramadan)

ANKARA (Reuters) - The Turkish arm of French carmaker Renault (RENA.PA: Quote) on Saturday offered concessions including a cash lump sum to striking workers if they return to work.

Production at the company's joint venture Oyak Renault has been halted for a week in a dispute with workers over pay and working conditions, which has also affected other producers in the northwest city of Bursa, including Tofas (TOASO.IS: Quote) and Ford (F.N: Quote) unit Ford Otosan (FROTO.IS: Quote).

In a statement on Saturday, Oyak Renault said workers would not face disciplinary action, and would receive a cash payment of 1000 Turkish lira ($370) if production resumed at midnight on Monday. The results of financial improvement studies would be announced ahead of the Muslim holy month of Ramadan, due to start in mid-June, the company added.

It remained unclear on Saturday evening if the workers would accept the offer.

The strikes have shone a light on pay and conditions for Turkish workers at an awkward time for the ruling AK Party, which has for more than a decade presented itself as the party of the working class, with a parliamentary election due on June 7.

Speaking at an electoral rally on Saturday in the coastal city of Izmir, the co-chair of the opposition HDP, Selahattin Demirtas, called for solidarity with the strikers.

(Reporting by Birsen Altayli Writing by Jonny Hogg; Editing by Alison Williams)

People stand in front of Renault car plant in Bursa, Turkey, May 21, 2015. REUTERS/Murad Sezer