Kia reaches tentative wage deal with labor union, averting strike

GWANGMYEONG, South Korea, Aug. 25 (Yonhap) -- Kia Corp. and its labor union tentatively reached a wage deal Tuesday, the two sides said, averting a planned strike a day before it was to be staged.

If approved by the union members, Kia will settle a wage deal for the sixth consecutive year without a strike.

Under the preliminary deal, Kia will raise monthly base pay by 100,000 won (US$72.20), provide a performance bonus of more than 400 percent of workers' monthly salary and pay an additional payment of 12.7 million won to each employee, Kia said.

Unionized workers of Kia will vote on the preliminary deal Friday.

Earlier in the day, Hyundai Motor Co., which has Kia under its wing, tentatively reached a wage agreement following a series of strikes that caused production disruptions.