SOUTH Korean automaker Kia Corp. and its labor union have reached a tentative wage agreement, the union and company said, averting partial strikes that had been scheduled to begin on Wednesday.
The agreement reached on Tuesday will be put to a vote by union members on Friday, according to the union. Partial strikes scheduled for Aug. 26–28 have now been withdrawn by the union following the agreement.
“We appreciate our employees for their dedication and our negotiating teams for their tireless efforts throughout this process, marking the sixth consecutive year the two sides have reached a tentative agreement without a strike,” Kia said in a statement on Wednesday.
Under the tentative agreement, Kia workers would receive a 100,000 won ($72.34) increase in monthly base pay and a performance-related incentive package worth 400 percent of monthly wages plus 12.7 million won, according to the union.
The union approved plans last week to stage partial strikes from Wednesday but decided to withdraw the action after reaching the tentative agreement with management a day before the planned walkout.
The agreement came after Hyundai Motor’s South Korean union also reached a tentative wage deal with its management on Tuesday, averting further production losses following its biggest strike action in a decade.
Hyundai’s union went on a full strike, following a series of partial stoppages since July. They were demanding higher bonuses; an increase in the retirement age, which is subject to the amendment of the current law; and job protections against artificial intelligence and automation. reuters
