Kia has navigated around a potential strike by organized labor in Korea. According to Automotive News, the manufacturer joined GM Korea and Ssangyong Motor Company in reaching agreements with the companies' workers for better pay, pending a "yea" vote by employees. Kia workers successfully negotiated a 5.2 percent wage increase as well as bonus pay worth over $6,600 at current conversion rates. In addition, each worker will be granted 80 shares in the company. GM Korea, meanwhile agreed to give its employees a 4.7 percent wage increase as well as record-level bonuses. That move comes on the heels of the automaker's first annual profit since 2007

Kia has a vested interest in keeping its plants operational due to unusually low inventory levels. With Japanese automakers struggling to regain their footing following the disruption to industry caused by the Tōhoku earthquake and resulting tsunami, both Hyundai and Kia are determined to make ground on their rivals. Losing production capacity could have significantly hampered those efforts, costing the automakers untold sums.


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    • 1 Second Ago
  • 10 Comments
      jephmercury
      • 3 Years Ago
      35 million won base pay (33000). 6600 dollar bonus. 80 shares in the company (Worth about 5500 dollars) + Significant over time pay with overtime desired up to 10 hours a day. South Korea's PPP's only about 30000 dollars, little less than 2/3 that of US. It would be like a factory worker in the US taking home pay of 71,000 dollars a year just off of working 40 hours a week plus bonus pay whenever he needs extra income. ...How the hell?
      Bryan Lund
      • 3 Years Ago
      Good timing, Kia workers, you nasty dogs, threatening to strike right when Kia is striving to overtake Hon-Yota because of their recent weather disaster. Isn't business just the bees knees?
      dontneedpants
      • 3 Years Ago
      Stock tip: Kia http://www.bloomberg.com/apps/quote?ticker=000270:KS
        guyverfanboy
        • 3 Years Ago
        @dontneedpants
        I thought you can only buy the stock if you live in South Korea...
      stclair5211
      • 3 Years Ago
      Fast forward 10 years and Korea is bailing out Kia. Nobody ever learns from others past mistakes. Kia will become GM. Walmart will become K mart. Etc. The circle of life and when china gets going everyone is screwed. Then when their labor gets a nice comfortable life the world is screwed.
        Danny Eckel
        • 3 Years Ago
        @stclair5211
        China is already "going", they are systematically trying to **** America with cyber attacks, financially (not that we didnt help do that ourselves), supplying arms to our enemies. I am not a fan of china and they are certainly no fan of america and ill put my name to that not some anonymous patriotic thumbnail.
        Danny Eckel
        • 3 Years Ago
        @stclair5211
        Success will make them lose focus. But for now give them credit for making world class products (Elantra, Sonota) I never thought Honda would be in its current position.
      harbour
      • 3 Years Ago
      Oh, gee, wowzer. Golly gee?
      cclementi6
      • 3 Years Ago
      "Average wage" really doesn't mean much (read "How to Lie with Statistics," and old book but enlightening!). For all you know, they bumped up the salary of management 10,000 and lowered the workers'.
      Bassracerx
      • 3 Years Ago
      I like the idea of giving the employees stock they can turn around and sell it if they are that strapped for cash or they can hang on to it and feel like they have more invested in the company.