Kia Reaches Wage Deal Without Strike for Sixth Straight Year

Kia (000270) reached a tentative wage and collective bargaining agreement for this year without a strike, marking the sixth consecutive year of strike-free negotiations.

Kia's management and union held their 12th main bargaining session at AutoLand Gwangmyeong from 2 p.m. on the 25th and produced a tentative agreement for the 2026 wage and collective bargaining talks, the company said. The agreement will be finalized after a union membership vote on the 28th.

The union had planned to begin partial strikes from the 26th, but the tentative deal reached that day secured a sixth straight year of settlement without labor disruption.

The agreement includes a 100,000 won increase in base pay, a performance bonus of 300% of monthly wages plus 4 million won, a quality improvement incentive of 100% plus 4.7 million won, a 4 million won bonus marking the 2026 Autocar Awards, 47 treasury shares as an incentive for concluding the 2026 collective bargaining, and 500,000 special points for meeting the 2026 record production and sales targets.

"Despite difficulties at home and abroad, the agreement reflects the view that reasonable compensation should be provided under the principle that rewards follow results," a Kia official said.

Kia's management and union also signed a separate agreement on preventing serious industrial accidents and securing employment through stronger future competitiveness. It calls for establishing a safety culture to prevent serious accidents and for joint labor-management responses to the industry's transition, in order to strengthen competitiveness, sustain growth momentum and stabilize employment.

The two sides also agreed to set aside 4 billion won as a social contribution fund to be used for community development and support for people in need.

"Traditional global automakers, including those in Germany, are struggling, but Kia has built a full lineup spanning internal combustion engines, hybrids and electric vehicles, and is producing visible results such as higher sales," the Kia official said. "We will wrap up these negotiations quickly and both sides will do their utmost to move up another step toward becoming a global top-tier company."