Kia’s workers began a week of strikes on Monday, the 20th year in a row that the South Korean carmaker has suffered industrial unrest.
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The union has called for strikes of up to six hours on the morning and evening shifts and will stop overtime production; about 64 hours of lost output is expected.
Eight months of negotiations over a new pay package have stalled and the strikes are the latest move by the union to pressurise management to improve the offer.
Kia estimated that the 11 strikes in 2009 cost it 48,000 units of lost production and KRW860bn (US$766bn) in lost revenue.
Bonus payments is the main stumbling block in the negotiations, according to Kia management.
The company has offered KRW4.6m plus 300% of monthly salary, which comes to a record high of 11.25m won (US$1,000) for those who have worked at the company for more than 15 years.
The union is asking for 300% and KRW5m with extras so that Kia bonuses match those at parent company Hyundai Motor where the union concluded wage negotiations without staging strikes for the first time in 15 years last month.
The Hyundai agreement freezes wages but allows bonus payments of KRW5m, 40 Hyundai shares and 300% of monthly pay. Part of that deal was a reward to workers for completing the negotiations without striking.
