Hyundai union backs strike plan

Hyundai is hoping to become the world's fifth biggest carmaker

South Korean carmaker Hyundai is set to face its third strike this year after unions backed action over a pay row.

Almost two-thirds of the company's 44,800 union members in the country voted in favour of a walkout after annual wage negotiations broke down.

The union wants an 8.9% pay rise and a rise in retirement age to 60 from 58. Under legal rules any strike cannot take place before Tuesday.

Hyundai has offered a 5.4% pay rise, saying the demands are unacceptable.

'Cooling off'

Both unions and the company are also at loggerheads over bonus payments.

Unions want a 30% share of the group's 2007 net profits, while Hyundai has tabled an offer of annual bonuses equal to three months' salary.

Strikes at the world's sixth largest carmaker are not unusual - workers have staged walkouts every year except one since it was founded in 1987.

If workers do strike over the current pay row it will be the third time staff have downed tools at the company this year.

However, both sides have agreed to a "cooling off" period and will hold another set of talks on Monday in an effort to resolve the row.