Production resumes at Turkish units of Ford and Fiat (updated)

Turk Traktor ve Ziraat Makineleri

22/05/2015 09:11

(Recasts, adds background) 
    ISTANBUL, May 22 (Reuters) - Production resumed at the 
Turkish operations of Ford  F.N  and Fiat Chrysler  FCHA.MI  on 
Friday after a labour dispute disrupted output for about a week 
and embarrassed the government ahead of a parliamentary 
election. 
    But assembly lines remained stalled at Renault's local 
operations, while tractor maker Turk Traktor  TTRAK.IS  said on 
Friday it was forced to halt production because of the dispute.  
    The dispute over working conditions and pay started late 
last week at factories in the northwest city of Bursa and  
spread to a number of parts suppliers in the area, where 
Turkey's auto industry in centred. 
    Ford Otosan  FROTO.IS  said operations had restarted at its 
Golcuk and Yenikoy plants in the northwest.  
    Tofas  TOASO.IS , a joint venture between Fiat and Koc 
Holding  KCHOL.IS , said its production had restarted, adding it 
had no problems in getting parts from suppliers. 
    Renault has said it might reconsider investment in Turkey if 
the labour dispute brings instability.  ID:nL5N0YC2NK  
    Workers said the dispute was sparked after union Turk Metal 
last month negotiated a 60 percent wage hike for workers at a 
plant run by parts maker Bosch Fren  BFREN.IS , but failed to 
secure a similar deal elsewhere. 
    The protests highlight what critics call one of the 
contradictions of Turkey's economic progress - that years of 
rapid growth have not been accompanied by a significant 
improvement in working conditions. 
    Around 40 percent of Turkish employees work 50 or more hours 
a week, the highest among the more than 30 countries in the 
Organisation for Economic Co-operation and Development (OECD). 
 
 (Reporting by Daren Butler; Writing by David Dolan; editing by 
Susan Thomas) 
 ((daren.butler@thomsonreuters.com; +90-212-350 7122; Reuters 
Messaging: daren.butler.thomsonreuters.com@reuters.net)) 
 
Keywords: TURKEY AUTOS/STRIKE