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Monday July 9, 9:06 AM

Kia Motors Mulls Legal Action Against Partial Strike

SEOUL, July 9 Asia Pulse - Kia Motors Corp. (KSE:000270), South Korea's second-largest automaker, said Friday it was considering filing a complaint against its union with the police as the union staged a partial strike over salary demands.

Kia's 28,000 workers were walking off their jobs for eight hours on the same day, in a second work stoppage last week, after failing to close the gap with management over wage demands in the previous two days.

"The management is considering taking legal action against the union leaders," said Kang Hyun-geun, a Kia spokesman, citing production losses caused by the union's partial strikes over the past two weeks.

Later in the day, the union decided to stage four-hour strikes on July 10, 11 and 13.

But it still remains to be seen whether the planned strike will materialize, as the two sides are scheduled to meet again on July 9 and 12.

The week before last, Kia's union laid down their tools for two days to protest against South Korea's free trade agreement with the United States. On Tuesday, the union staged an eight-hour partial strike over wages.

The four days of partial strikes have caused the company to lose production of 6,818 vehicles, valued at 99.6 billion won (US$108 million), Kang estimated.

On Wednesday and Thursday, Kia's management and union met at the automaker's main plant in Gwangmyeong, just south of Seoul, to try to resolve the wage dispute, but the negotiations broke down when the company didn't present a counter offer to the union's demand.

The union is demanding an 8.9 per cent raise in basic salary and a special bonus equivalent to two months' salary.

Kia is an affiliate of Hyundai Motor Co. (KSE:005380), South Korea's biggest automaker.

(Yonhap)


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