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UPDATE 1-Turkey's Oyak Renault says production resumes after workers' protest

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ISTANBUL, May 27 (Reuters) - Production has resumed at the Turkish arm of French automaker Renault, the company said on Wednesday, after employees ended a more than week-long protest and went back to work.

Employees at Oyak Renault, a joint venture between Renault and the Turkish army pension fund, walked off the job earlier this month to protest wages and working conditions.

The protest then spread to other automakers including the local operations of Ford and Fiat Chrysler. The factories are located in an around the northwest city of Bursa, the home of much of Turkey's auto industry.

The dispute came at a sensitive time for the country's ruling AK Party ahead of next month's national election.

Renault had said it might reconsider investment in Turkey if the labour dispute brought instability, a worrying message for the AK Party which is keen to retain its popularity among the working class.

Workers will be paid bonuses of 1,000 lira ($378) within the first week after returning to work, with further bonuses at the end of the year based on performance, Oyak Renault said in a statement.

"We hope this will put an end to the problematic period in the automotive sector caused by our factory," it said.

Last week, production resumed at Ford Otosan and at Tofas, a joint venture between Fiat and Turkey's Koc Holding. (Reporting by Birsen Altayli and Tuvan Gumrukcu; Editing by David Dolan and Jane Merriman)