Kia Motors union agrees to 5.17 pct wage hike

SEOUL, July 22 (Yonhap) -- The management and labor union of Kia Motors Corp., South Korea's second largest automaker, agreed to a 5.17 percent hike in base pay Friday, ending their annual negotiations without a strike for the second year in a row.
The carmaker said the tentative deal was reached after overnight negotiations at its Gwangmyeong plant, west of Seoul. The labor union plans to put the wage agreement to a vote on Wednesday.
"The settlement highlights the level of maturity and trust in management-union relations that did not require a strike or walkout to settle outstanding issues," the company said.
Under the agreement, the carmaker agreed to raise base pay by 90,000 won (US$85.20) and give a 300 percent bonus and extra 7 million won in special encouragement money. Kia will also give workers 80 shares of company stock.
In addition, both sides agreed to set up a joint committee to discuss how to raise productivity, streamline the current pay system and best carry out future facility investments that are vital for sustained growth.
Kia said the speedy resolution to the talks was possible because management and labor dispensed with unnecessary formalities and focused on key issues after starting their talks on July 7.
The two sides reached the deal in 16 days, which is the shortest time in the company's history that the annual wage negotiations have been settled.