Kia Motors Union Goes on Strike Today

By Staff Reporter Seoul, August 17, 2003; Seo Jee-yeon writing for the Korea Timeas reported that Kia Motors' union will stage a full strike this afternoon, as two-day labor-management negotiations broke off Wednesday.

The union and management of Korea's second largest carmaker had sought an agreement through eight rounds of negotiations since this year's collective bargaining began on July 2.

But the two sides were unable to narrow their wide differences not only for a wage hike but also over sensitive issues such as the introduction of a five-day workweek, partial labor participation in management decisions and measures to protect irregular workers.

Kia's union has demanded an 11 percent pay increase, while the company offered 8 percent.

Unionized Kia workers demanded that management consult with the union in developing new models. Kia's management rejected the call, claiming the union's preliminary review of new product development infringes on basic management rights.

The union also demanded the immediate adoption of a five-day workweek but management set a 5 percent hike in productivity as a precondition for adopting the system.

The two sides plan to start a ninth round of talks on Monday to resolve their differences.

The carmaker said the damage by repeated strikes since last month topped 317 billion won, or 21,500 units, as of August 14.

With the full strike launched today, the damage could surge to 340 billion won, or 23,000 units, it claimed.

Labor unrest at Kia has had an impact on consumers and partner firms waiting for new cars. Due to the slowed production, for example, consumers who ordered Kia's sports utility vehicle Sorrento have had to wait almost two months for delivery. Kia's partner firms have also complained about delays in the delivery of their parts to Kia.