A round-up of today's other stories in brief
Volkswagen strike 3.2% wage rise over 16 months with workers
Volkswagen has struck a 3.2 per cent wage rise deal for its domestic workforce, as it seeks to balance workers’ demands for a share in profits with the need to maintain competitiveness.
The carmaker said it would pay its western German workforce of about 100,000 people an additional one-time payment of 1 per cent of their annual salaries. The wage agreement, which runs for 16 months starting in May, sets the scene for a possible round of wage increases in other industrial sectors.
Policymakers and central bankers are keeping a close eye on the German jobs market as they look for signs that rising commodity prices could feed through to inflationary pressures. – Copyright The Financial Times Limited 2011
Moody's cuts rating of Eircom parent
Moody’s Investors Service has cut the probability-of- default rating of ERC Ireland Finance Ltd, an indirect parent company of Eircom, to Caa2 from Caa1, citing “increased risk of default through some form of debt restructuring”.
“There is still no clarity regarding a possibly equity injection from the shareholders or indications of progress on a covenant amendment process,” the ratings company said .
Eircom may breach loan covenants in the quarter ended June 30th, if not sooner, Moody’s said. Loan prices of Eircom increased on reports of fresh shareholder equity. – Bloomberg
Kentz buys SA firm for $10m
Irish engineering group Kentz has acquired South African-based RNE Engineering and Projects in a deal worth about $10 million (€7.3 million), writes CIARA O'BRIEN.
Kentz said it would pay about $10 million in cash over a period of four years for RNE, which offers project management, engineering and design services.
RNE has about 85 employees based in two offices in Secunda and Sasolburg, South Africa, and has worked with Kentz for more than three years.
Kentz said the partnership would support the growth of its various activities in South Africa.
