Kia Motors has ended 38 days of strikes yesterday by agreeing to an 8.8%, 98,000 won (US$84) wage increase as well as new bonus and incentive pay awards equal to three months' salary, and a five-day working week.

The union representing Kia Motors workers withdrew its demand for participation in management decisions on new vehicle development after the company promised to communicate its new plans whenever they are decided.

The Kia wage increase is higher in percentage terms than the 8.5% awarded recently by Hyundai Motor Co. after prolonged industrial action at South Korea's largest vehicle manufacturer.

The Kia deal is subject to a union ballot due to be held tomorrow, 28 August.