Kia Workers Approve New Wage, Scheduling Agreement

During bargaining that began May 22, the union conducted partial strikes on 33 days, costing the auto maker lost production of 62,890 units valued at 1.03 trillion won.

Vince Courtenay, Correspondent

September 14, 2012

1 Min Read
New contract ends partial strikes that cut into production
New contract ends partial strikes that cut into production.

Kia workers on Friday ratified the tentative collective-bargaining agreement reached earlier this week, with 59% of those who voted approving the new pact.

“The ratification vote was counted at the close of business on Friday (Korea time), and we are very happy that it ends the partial strikes we have been experiencing,” a Kia spokesman tells WardsAuto.

“The effects of the partial strikes had a negative effect on our sales, although some of the markets we serve (already) are struggling so there are other factors involved.”

Under the new pact, Kia workers get a 98,000 won ($86.50) boost in monthly pay and bonuses totaling 9.6 million won ($8,500).

The auto maker also agrees to stop scheduling two 10-hour shifts that require second-shift workers to work throughout the night. A new arrangement with one 8-hour and one 9-hour shift will be phased in, with the night shift ending at midnight.

The two sides held 30 negotiating sessions beginning May 22. During that period the union conducted partial strikes on both shifts for 33 days, costing Kia lost production of 62,890 units valued at 1.03 trillion won ($919.4 million).

Ratification of the Kia contract leaves only GM Korea without a collective-bargaining agreement. The auto maker reached a tentative agreement with its workers union earlier this week, but the union has not yet scheduled a ratification vote.

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