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The Kia Motors labor union said Monday that it will go on strike to protest against the company¡¯s decision to generate liquidity through the sale of manufacturing equipment. A union official said management violated an agreement with the union by deciding to generate liquidity through a sales and lease-back arrangement of manufacturing assets at the firm¡¯s Sohari plant. The labor union warned that it will start an indefinite strike on Tuesday morning unless management withdraws the decision.
The decision came in a meeting of union leaders and would therefore be illegal since it did not involve a vote by union members. Kia Motors decided to sell and then lease back manufacturing equipment to procure the financial resources to invest in a plant in the U.S. state of Georgia and the development of new models. As of late last year, Kia¡¯s debts increased by W919 billion (US$1=W997) to W7.77 trillion. It posted an operating deficit of W125 billion in 2006 and W55 billion in 2007.
(englishnews@chosun.com )
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