Aug. 29 (Bloomberg) -- Hyundai Motor Co., South Korea’s biggest carmaker, climbed to a more than 10-month high in Seoul trading after its union agreed to resume wage talks.
Hyundai rose as much as 1.5 percent to 244,000 won, heading for the highest close since Oct. 4. They were trading up 1 percent at 243,000 won as of 1:11 p.m. in Seoul. The benchmark Kospi Index gained 1.5 percent.
The automaker, based in Seoul, and its union will hold talks today and tomorrow to agree on wages for this year, according to a statement on the union’s website. The announcement comes after Hyundai’s President Yoon Gap Han suggested holding three rounds of discussions each week to expedite the negotiations.
The union has been staging partial strikes since Aug. 20, demanding higher wages and better compensation. Hyundai estimates the walkouts have cost it 486.8 billion won ($439 million) in lost production, or 23,748 vehicles, the company said on Aug. 28.
Hyundai’s union, which began talks with the management on May 28, has said they want a wage increase of 130,498 won a month and 30 percent of net income to be distributed to workers.
Stalled wage talks at Hyundai has caused a production shortfall of more than 1.2 million vehicles and 13.3 trillion won in lost sales since the union’s 1987 formation, according to company data.
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