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Automobile industry

Kia Motors Resumes Normal Operations After Tentative Labor Agreement

Strategic Insights

— 1 min read

South Korea's second-largest automaker, Kia Motors, has returned to normal operations following a tentative agreement with its unionized workers to end a six-week strike. The agreement, which must be approved by unionized workers on Tuesday, includes a 5.7% monthly salary increase and additional bonuses worth 2 million won per worker. This comes after a nearly seven-week strike by Ssangyong Motor, which also settled with its union workers on Wednesday.

Key Takeaways:

  • Kia Motors has resumed normal operations after a six-week strike with its unionized workers.
  • The tentative agreement includes a 5.7% monthly salary increase and additional bonuses worth 2 million won per worker.
  • The agreement must be approved by unionized workers on Tuesday.
  • Kia Motors' vehicle sales plummeted 31.9% in August from a year ago to 60,312 units.
  • Domestic sales declined 30.8% to 15,202 units, while exports dropped 32.3% to 45,110 units.
  • Strikes have been an annual ritual for the unions of South Korean automakers, with Kia Motors' parent, Hyundai Motor Co., resolving its labor dispute last month.
  • The partial strike cost Kia Motors' parent about 1.3 trillion won in lost production.

Statistics:

  • 5.7%: monthly salary increase for Kia Motors workers
  • 78,000 won: additional monthly salary for each worker
  • 2 million won: bonuses given to each worker
  • 60,312: Kia Motors' vehicle sales in August, a 31.9% decline from the previous year
  • 15,202: domestic sales in August, a 30.8% decline from the previous year
  • 45,110: exports in August, a 32.3% decline from the previous year
  • 1.3 trillion won: lost production at Kia Motors' parent, Hyundai Motor Co., due to the partial strike
  • 3.59%: increase in Kia Motors' stock price on the Seoul bourse
  • 15,850 won: Kia Motors' stock price on the Seoul bourse

Sources:

  • "Kia Motors Corp. returns to normal production after labor deal" by Asia Pulse, September 1.
  • "Kia Motors Corp. to receive Supreme Court ruling on labor union dispute today." (Yonhap)

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