Union workers at Kia Motors have said they have put on hold a decision to strike over the company’s asset sale, after making a compromise with the management in all-night negotiations.
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According to the Korea Times, the 25,000-strong union of Kia Motors had planned to indefinitely lay down tools from Tuesday to protest the company’s sale of production facilities in one of its three plants, claiming the sale was in violation of an accord with the union.
Kia Motors, which is suffering from a chronic cash shortage, recently raised 250 billion won (USD250m) by selling the production facilities to the local unit GE Capital, the world’s largest non-bank financial services company.
The report added that under the compromise, Kia Motors agreed to return the facilities after repaying the debts to GE Capital by the end of this year, a union official said.
“The management also agreed to apologize for proceeding with the sale without prior notice to the union,” a Kia Motors union official reportedly said.
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