Seoul: Unionized workers of Kia Corp., South Korea’s second-largest carmaker, voted Tuesday to accept a wage hike deal for this year, the company said, marking the fifth consecutive year the company wrapped up wage talks without a strike.

According to Yonhap News Agency, Kia announced that 73.1 percent of the 21,356 union members who participated in the vote supported the tentative deal reached between labor and management. This significant agreement highlights the ongoing collaboration between Kia’s workforce and its management.

The new deal includes a 100,000 won (US$71) increase in monthly base pay, a performance-based bonus equivalent to 350 percent of base pay, 15.8 million won in cash, and 200,000 won in gift certificates per worker. These financial improvements underline the company’s commitment to rewarding its employees’ contributions.

Moreover, Kia plans to recruit 500 engineers for its production lines by the end of next year. This recruitment drive is part of Kia’s strategy to enhance its production capabilities and adapt to the evolving automotive industry landscape.

In a move towards innovation, Kia and the union have also agreed to collaborate on transforming the automaker’s domestic plants into core production facilities for next-generation models, such as purpose-built vehicles. This agreement reflects Kia’s focus on future-ready manufacturing solutions.

With the approval of the latest deal, Kia has successfully concluded wage and collective bargaining talks without labor disputes for five straight years since 2021, demonstrating a strong partnership between the company and its workforce.