Kumho Tyre Co., South Korea's second biggest tyre maker, has resumed production at three plants nationwide where operations had been halted since last week due to a strike, the company has said.

Labour union workers at the firm began their three-day strike Friday after failing to reach an agreement with the management over a pay raise and other incentives.

Kumho said earlier it would make some 706 workers - or 18 percent of its total workforce - redundant, if the union did not accept proposals for a wage freeze and reductions in fringe benefits.

The Yonhap news agency said the labour union has demanded a 7.48 percent rise in wages and bonus payments.

The Yonhap report added that the dispute remains unresolved, but the union and the management have said they will meet.