Hyundai Motor union approves revised wage deal

Hyundai workers will receive a 5.6 percent raise in their basic monthly salary and get a bonus equal to three months' salary and a lump-sum payment of 4 million won ($3,445). Hyundai also agreed to end overnight shifts beginning in September 2009. The only difference with the previous agreement is an increase in the lump-sum payment from 3 million won ($2,584), according to Hyundai spokesman Ki Jin-ho, who said Hyundai had no comment on the union's approval of the deal. Ki said that partial strikes beginning in July cost the automaker 44,646 vehicles in lost production worth 690.5 billion won ($594.3 million). Strikes have long bedeviled Hyundai. The company's union has gone on strike over pay or other issues every year but one since it was formed in 1987. In 2007, the company avoided a strike over wage negotiations for the first time in a decade, but workers walked off the job earlier in the year over other issues, including opposition to a free trade deal between South Korea and the United States. Hyundai, established in 1967, along with affiliate Kia Motors Corp. forms the world's fifth-largest automotive group. Separately, Kia Motors said in a statement it had achieved a second tentative wage agreement with its union. Under the deal, which still requires approval by the union, Kia workers would receive a 5.6 percent increase in monthly salary, a bonus worth three months' salary, a one-time payment of 3.6 million won ($3,100) and an extension of the retirement age to 59 from 58. Strikes at Kia this year have resulted in lost production to the tune of 16,676 vehicles worth 221.7 billion won ($191 million), according to the company.