Tuesday, March 25, 2008

Kia Union to Strike Over $250 Million Sale Leaseback of Korean Auto Plant

Tradingmarkets.com - March 23, 2008

The labor union of Kia Motors said Monday that it will strike to protest the management's decision to generate liquidity through a sales and lease-back arrangement of manufacturing assets at one of its plants, which may affect workers' job stability.

The strike protesting the sale and lease-back of Kia's Sohari plant is expected to affect production in Sohari, Hwaseong and Gwangju, and will go into effect on Tuesday.

The labor leader said the strike will be maintained indefinitely, unless the management reconsiders the Sohari deal, which the company claims generated 250 billion won (US$250.7 million) in liquidity.

The labor activist claimed that the management broke a standing pact with the union by generating funds in a manner that can affect production and hurt job stability.

Labor experts, meanwhile, said the decision by Kia labor leaders to strike may be controversial because there was no union-wide vote. The motion was passed by a gathering of union representatives of Kia.

Kia Motors Corp. is South Korea's second-largest carmaker, and is an affiliate of the giant Hyundai Motor Co. Sphere: Related Content

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