Union officials representing workers at Kia Motors Corp. (000270), South Korea’s second-biggest carmaker, will continue negotiations with the company after a majority of employees yesterday rejected a wage pact.
Workers at the Seoul-based company will consider whether or not to strike after the summer vacation period that lasts from July 30 to Aug. 7, according to a statement today from the Kia Motors Workers’ Union.
Company spokesman Michael Choo declined to comment on the results of the voting yesterday and any potential strike.
Only 46 percent of the workers voted in favor of the agreement yesterday, rejecting the pact made between union officials and the company on July 22.
“Depending on how things go, we will consider going into a strike after the break,” said Kim Yeon Hong, secretary general of the Korea Metal Workers Union, an umbrella labor group that covers the Kia Motors Workers’ Union. “We can’t definitively say there will be a strike.”
Kia Motors shares fell 2.4 percent to 77,500 won as of the 3 p.m. close of trading in Seoul today, compared with a 0.9 percent decline in the benchmark Kospi index.
To contact the reporter on this story: Rose Kim in Seoul at Rkim69@bloomberg.net