Labour union leaders at Kia Motors have reached a tentative agreement on a wage increase and other benefits, paving the way for an end to three weeks of strikes, a Kia spokesman told Reuters on Tuesday.
Go deeper with GlobalData
Workers belonging to the 23,500-strong union will vote on whether to approve the deal this week, spokesman Kim Chang-ho reportedly said, altering an earlier plan to vote immediately.
“We’ll disclose details on the tentative agreement soon,” Kim told Reuters.
The union had been demanding an 11.1% pay rise and a cut in the working week to five days from six, Reuters noted, adding that a prolonged strike would have led to order cancellations and hurt earnings at Kia, which produces about one million cars annually.
Reuters also noted that the company reported a rise in net profit of just 3.4% in the second quarter as hefty provisions for warranties offset rising exports of pricier cars.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe labour dispute, which lasted some 20 days, has cost Kia about 530 billion won ($US450.9 million) in lost output, a Kia union leader told the news agency.
Kia is an affiliate of Hyundai Motor whose union this month won an 8.6% wage rise, bonuses and incentive payments, Reuters said.
