Kia Workers Reject Wage Deal; Hyundai, Union in Deadlock

Negotiations between Kia and its workers union are in limbo after union members rejected a tentative wage agreement reached last week.

And bargainers are making no progress in wage talks at sister company Hyundai.

The annual, week-long summer holiday for both companies begins at the end of this week.

Analysts say there is no hope talks will resume before the week of Aug. 8.

Securities analysts in Korea thought the Kia deal, which included record-high bonuses, was extremely generous. But only 47% of voting union members approved it.

Comments on the union website indicate there is unhappiness about going from a 3-shift to 2-shift schedule, which isn’t fully resolved in the tentative agreement.

The pact included record-high bonuses of 7 million won ($6,666) per worker and 80 shares of Kia stock, valued at close to 6.8 million won $6,000).

Analysts believe unionists are hoping management will put in an additional sweetener bonus, as has happened in the past when a preliminary wage agreement is rejected.

Talks snag between Sonata maker Hyundai, union

Kia has no comment.

Meanwhile, negotiations between Hyundai and its union broke off in acrimony when dissatisfied union bargainers abruptly ended the session.

The union contends the major stumbling block is management’s refusal to sidestep national regulations that allow it to pay salaries to only 26 union representatives, instead of the current 230 representatives who receive full pay for working on union business.

The national time-off system is part of a federal labor law passed last year, which strictly limits the number of full-time, paid union representatives according to company size.

The union says on its website that no negotiations will be held before work resumes Aug. 8, and that further talks are meaningless unless Hyundai changes its position on the time-off system.

Hyundai declines comment.