Strikers set to vote on Hyundai offer

SEOUL - Hyundai has reached a tentative agreement with workers to end a month of partial strikes that cost $2.1 billion in lost production.

The company offered a raise of 5.1 per cent in base pay and staff will vote today on the proposal.

They returned to work yesterday after striking for several hours daily since June 26.

Hyundai chairman Chung Mong Koo, 68, has been on trial on bribery and embezzlement charges since June 1, delaying labour talks, product development and overseas investment.

The firm has faced strikes every year except one since its union was founded in 1987, impeding its goal of becoming one of the five biggest carmaking groups globally.

"Hyundai needs to find a way to resolve labour issues to become a global player," said Song In Ho, of Kyobo Investment Trust Management.

The partial strike caused Hyundai to lose production of 93,882 of its Sonata sedans, Santa Fe four-wheel-drives and other models.

Chung is on trial for allegedly misusing $680 million of Hyundai money and embezzling $205 million to set up a slush fund.

He returned to work on July 14 after he was released on bail.

- BLOOMBERG