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SEOUL, July 23 (Reuters) - South Korea's Kia Motors Corp said on Tuesday it had reached an agreement with its union on a wage hike, ending weeks of strikes that have cost the firm about 450 billion won ($391.1 million) in lost output.
Unionised workers at the country's second-largest automaker have held partial strikes since late June seeking a pay raise and shorter work hours after the company post record profits.
"The workers voted to accept our latest offer on wage hike," Kia said in a statement.
Kia has offered an 85,000-won raise in monthly salaries and a 150 percent plus 800,000 won performance bonus.
The company has also agreed to give each worker another 10,000 won allowance each month besides the monthly salary hike on offer.
The news boosted Kia shares 8.5 percent to 10,900 won, while the broader market closed up 3.14 percent.
Kia is part of Hyundai Motor Group, where workers at flagship Hyundai last month received a 95,000 won raise in monthly salaries and performance bonuses worth two months' wages after partial strikes.
The partial stoppages that began late in June caused lost production of 35,000 vehicles, Kia said.
Kia, which began selling the Sorento SUV and the mid-sized Regal passenger car this year, expects 2002 sales to rise 12.5 percent to 13.9 trillion won.
The company expects sales of vehicles this year to rise 6.6 percent to 962,000 units.