Hyundai, Kia unions strike against US trade pact

SEOUL, June 28 (Reuters) - Unionised workers at Hyundai Motor Co. , South Korea's top auto maker, and its affiliate Kia Motors Corp. on Thursday launched a four-hour strike in protest against a U.S./South Korea free trade pact.

Hyundai and Kia workers plan a further six-hour strike on Friday, said union officials from both companies. Kia's union members voted for another strike plan for next week to seek higher wages and better working conditions.

Hyundai and Kia said production would resume from Monday.

"All of our assembly lines were stopped," Chang Kyu-ho, a Hyundai union spokesman said by telephone.

The labour actions are estimated to cost a combined 8,800 vehicles, or 127 billion won ($137.1 million) in lost output, to both Hyundai and Kia, which are together the world's No.6 auto maker by sales volume, a Hyundai Motor Group spokesman said.

Poor labour relations are seen as a major hurdle to Hyundai's target of becoming the world's No.5 automaker by sales volume along with Kia.

In 2006, Hyundai's union members staged strikes for a total of 33 days as they called for higher wages and better working conditions. Some of the protests were made in opposition to new labour laws and free-trade talks with the United States.

Those actions cost Hyundai 115,683 units in lost output, or 1.6 trillion won, the company estimated.

Unionised workers at Kia, the country's No. 2 auto maker, approved a plan to launch eight-hour strikes from July 3 to July 6 as they demand an 8.9 percent rise in basic salaries and other benefits, a union official said.

Earlier this month, union members at all the country's auto makers said they would participate in the Korean Metal Workers' Union's decision to hold a four-hour strike on Thursday and a six-hour stoppage on Friday.

Production lines at at GM Daewoo Auto & Technology Co. were not disrupted as only union leaders joined the strikes, company officials said.

Unionised workers at Ssangyong Motor Co. did not launch a partial strike on Thursday as they reached a tentative agreement on this year's wage deal with management, a union spokesman said.

Renault Samsung Motors Inc. does not have a union.

Last year, South Korean automakers' unionised workers voted to bring their company unions under one industry group to strengthen bargaining power.

Shares in Hyundai closed down 0.94 percent to 74,100 won, underperforming a 1.08 percent gain in the broader market . Kia ended flat at 14,600 won while Ssangyong rose 2.6 percent to 7,100 won. ($1=926.5 Won)

Copyright © 2007 Reuters Limited. All rights reserved. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of Reuters Limited

Copyright © 2007 Yahoo! Singapore Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved.
Privacy Policy - Terms of Service - Community - Help