Hyundai Motor, union reach deal to end strikes

SEOUL: South Korea's largest automaker Hyundai Motor reached a deal with its union to end a protracted dispute which has cost more than 600 million dollars in lost production, the company said Friday. Some 95 per cent of the 45,000 union members voted on the deal covering working conditions and wages and endorsed it by a 54-43 margin.

Since early July workers have been staging sporadic walkouts to press their demands. The union has gone on strike every year but one since it was founded in 1987. "This year's negotiation was tougher than ever as we had some difficult issues to resolve," a Hyundai Motor spokesman said.

"We will continue our efforts to improve labour-management relations and establish a mature negotiating culture by further developing a spirit of mutual understanding and conciliation between the two sides." Under the deal, the company will abolish its all-night shift system in September next year.

It also agreed to raise the monthly base salary by 5.61 per cent and pay a bonus equivalent to three months' salary. Workers will also receive a lump-sum payment of three million won (almost 2,600 dollars).

The company's second-quarter net profit fell 10.6 per cent year-on-year despite record sales, due to foreign exchange losses on debt repayments. Net profit was 546.9 billion won (475 million dollars) in April-June, down from 611.5 billion a year earlier.