Kia to shorten working hours

Kia Motors said Wednesday that it has reached a tentative agreement with its labor union to shorten working hours and scrap the 40-year-old overnight shift system at local factories from March 2013.

The deal came after Kia’s sister company Hyundai Motor and its union leaders agreed late last month on pay and working conditions, including the abolishment of the overnight shift system.

If the deal is approved by union members in a planned vote on Friday, the overnight shift system will be abolished within Hyundai Motor Group, except in cases of special production, Kia said in a statement.

Under the new agreement, Kia will replace the current two 10-hour shifts with eight- and nine-hour shifts. Working hours per worker will decrease from the current 2,137 hours per year to 1,887 hours.

Kia, which started testing the new shift system in March, said it will be able to make up for reduced output by raising productivity with an additional production facility worth 300 billion won ($266 million).

Since a partial strike started in July, the 12 walkouts by the labor union stopped Kia from making around 59,000 cars worth 973.5 billion won, which could have affected its car sales in August and September.

The deal also included a 5.3 percent rise in basic pay, the extension of the retirement age of full-time workers from 59 to 60 and other welfare benefits.

“Labor and management agreed to enhance competitiveness for the company’s sustainable growth,” said a Kia official. “Employees can concentrate more on work as well as enjoy a higher-quality life, and that will translate into increased product quality.”

By Lee Ji-yoon (jylee@heraldcorp.com)