Kia Motors reaches agreement to end strike image

The company and its union workers representatives reached yesterday a wage agreement that ends a three-week strike that cost the company an estimated 414 billion won ($381 million) in lost production.

According to a message from the union, the agreement between labor representatives and Kia to raise the monthly base salary by 97, 000 won was approved in a vote today by the company’s 34,000 guild members.

The accord ends a walkout that the company estimates cost 23,271 vehicles in lost production as of Sept. 11, and together with biggest shareholder Hyundai Motor Co. is grappling with increased competition as a weaker yen gives Japanese carmakers an edge in the U.S.

South Korea’s second-largest automaker estimates labor disputes have caused missed production of almost 400,000 vehicles and lost sales worth 6 trillion won from 2002. This accord follows the one from earlier at Hyundai that also led to their own strike come to an end.

Worldwide, Kia sold 1.9 million vehicles in the first eight months of 2013, up 4.8% from a year earlier, according to a regulatory filing on Sept. 2. The automaker will probably report a third-quarter profit of 923 billion won, according to analyst estimates.

Via Bloomberg