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.
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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.
The 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.
