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Hyundai union rejects management offers, strike on

SEOUL, June 24 (Reuters) - Unionised workers at South Korea's top auto maker Hyundai Motor Co said on Thursday they had rejected offers of a performance bonus and wage increase and would go ahead with strikes as planned.

A company spokesman said Hyundai had offered a 6.18 percent increase in base salary, lower than the union's demand for a 10.48 percent rise. Hyundai also proposed bonus payouts of three months' basic wages, against union calls for bonuses equivalent to 30 percent of the company's net profit.

It also proposed cutting holidays.

"We cannot accept the proposals," said Chang Gyu-ho, a spokesman for Hyundai's union, which represents more than 80 percent of the firm's workforce.

"We will go ahead with strikes as planned, while resume negotiations with the management on Monday."

Unionised workers at the car maker have said they plan to launch partial strikes starting on Friday and a full one-day walkout on Tuesday.

Hyundai's strike is widely expected to spark similar industrial action by affiliate Kia Motors Corp , sports utility vehicle maker Ssangyong Motor and unlisted GM Daewoo Automotive Technology.

South Korea faces a tough bargaining season with unions every summer, but labour unrest this year poses a big headache for a government struggling to bolster depressed local consumer spending and life business investment to guide growth higher.

Shares in Hyundai closed up 3.5 percent at 41,500 won, in line with a 3.28 percent jump in the broader market to a two-week high.