The management and labor union of South Korea’s second-largest automaker Kia Corp. on Tuesday reached a tentative agreement on wage and working conditions for this year.

Under the agreement, the two sides decided to revise the clause that prioritizes the employment of children of long-term employees. They also agreed to hire 300 new employees to address youth unemployment.

Plans for securing future competitiveness have also been put in place.

The two parties agreed to cooperate closely for the successful construction and production of the ongoing new factory.

The agreement also includes commitments to expand domestic investments in new businesses and core components of future vehicles, securing local orders in line with the transition to future businesses, and ensuring employment stability through joint efforts.

The wage and performance incentive plan includes a basic salary increase of 111,000 won ($82), a management performance bonus of 300 percent plus 8 million won, a production and sales target achievement incentive of 100 percent, a special incentive of 2.5 million won, and 250,000 won in traditional market vouchers.

The agreement also includes the issuance of 34 free shares as compensation for no labor disputes.

“In a situation where uncertainty in the automotive industry is growing and global competition among companies in the field of future vehicles is intensifying, Kia’s labor and management were able to reach an agreement by aligning with the broader goals of future development and employment stability,” the company said.

The union will conduct a vote on the tentative agreement among its members on Friday. If the deal passes, Kia will achieve three consecutive strike-free wage negotiation settlements.

By Park So-ra and Minu Kim

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]