Union to Expand Kia Motors Strike Actions

SEOUL, July 8 Reuters reported today that Unionized workers at South Korea's second-largest automaker, Kia Motors Corp, said on Monday they plan to expand partial strike action to press for higher wages.

Workers at Kia and affiliate Hyundai Motor Co, the nation's largest automaker, have been seeking higher pay after booming auto sales led to record profits at the two automakers.

Kia spokeswoman Kim Jin-ho confirmed to Reuters the union planned to expand partial strikes, but gave no further details.

Hyundai Motor workers reached an agreement last month over wage hikes, averting a planned full strike.

"Starting today, we plan to increase partial strikes to eight hours a day from four hours," Jung Kil-dong, a spokesman for Kia's 22,000-strong union, said. Newspaper reports had earlier said the union had been holding partial strikes of two to four hours a week.

"But we also plan to hold continuous meetings with management," he said.

Kia shares were down 2.4 percent at 12,200 won ($10.25) at 0056 GMT, while the broader stock market index was up 1.17 percent.

Unionised workers are seeking a 128,803 won or 12.5 percent raise in their monthly salary and a 300 percent increase in bonuses, as well as shorter work hours, Jung said.

"The partial labour strikes have led to delayed production of 6,200 vehicles and 79 billion won in lost sales," a Kia spokesman said.

The automaker saw vehicle sales in June fall 11.8 percent year on year to 70,359 vehicles, as customers stayed out of showrooms to watch the World Cup soccer tournament co-hosted with Japan between May 30 to June 31.

Thousands of South Korean workers went on strike in late May to press demands for higher wages and a shorter work week. But public criticism had put pressure on management and unions to resolve labour issues before South Korea basked in the world's spotlight during the World Cup finals.

Last month, the partial stoppages at Hyundai delayed production and delivery of about 27,300 vehicles worth 350 billion won, according to Hyundai.