Seoul, Aug 06: The labour union and management of South Korea's Hyundai Motor Co. have reached agreement on higher wages and improved working conditions, ending weeks of strikes, officials said today. The settlement, which came shortly before midnight yesterday, includes an 8.63 per cent wage increase, the introduction of a five-day working week from September and other benefits.

As part of the agreement, Hyundai Motor workers, a powerful force in South Korea's militant umbrella labour group, the Korean Confederation of Trade Unions, were also given a say in management's decision-making process. "The agreement is not final because it requires approval from workers," Hyundai Motor spokesman Park Chan-Yoo told a news agency .

"Their intervention in management will be limited to issues concerning job security," he added.

Hyundai Motor shares fell today even though the agreement brought an end to crippling strike action. Shares fell 700 won to 34,800 won in early trade.

Dealers said that investors, rather than welcoming the end of the strike, were concerned that the union's participation in management's decision-making process might lead to further disputes. Demands by labour groups this year have focused on a shorter work week from six to five days and union participation in key management decisions.

The carmaker has suffered about 1.3 trillion won (1.1 billion dollars) in lost production since labour disputes erupted on June 20.

Bureau Report