Kia, Union Reach Tentative Wage, Benefits Agreement

Kia management anxiously await the Friday (Sept. 13) ratification vote on a tentative collective- bargaining agreement reached early Thursday in Korea.

The deal was signed at the end of a session that ran for more than 10 hours Wednesday, Sept. 11, at the same time workers at all three Kia plants in Korea were holding 4-hour partial strikes on each of two shifts.

A source tells WardsAuto the partial strikes have resulted in lost production time of 88.7 hours, equivalent to 23,737 units valued at 413 billion won ($381.5 million).

The wage and benefit levels correspond exactly with those reached in the recently concluded agreement between sister brand Hyundai and its workers’ union, so there is not overwhelming confidence the Kia rank-and-file will vote for the new pact, the source says.

The Hyundai deal passed narrowly Sept. 9 with support from 55.1% of about 42,000 workers who voted. Of the auto maker’s 46,000 unionized factory and white-collar workers, 4,000 did not cast votes.

Salaried workers below middle-management positions at both Kia and Hyundai pay union dues, even if they opt not to join the union. They receive wage and benefit increases in line with the collective-bargaining agreements.

The source says the Kia deal includes an average basic monthly pay increase of 97,000 won ($90) and a performance bonus package equivalent to five months’ pay, in addition to cash payouts of 8.5 million won ($7,900).

Kia’s unionized employees also will receive credits that can be used wherever they please. All workers possess a HyundaiCard credit card to which 500,000 won ($460) in credits will be added.