Hyundai and Kia braced for second year of walkouts

Hyundai Motor and Kia Motors workers agreed to go on strike for a second year to demand higher wages.

More than 70 per cent of Hyundai's 45,000 guild members voted in favour of authorising union leader Moon Yong-moon to call for a walkout at the company, Kim Gi-hyuk, a union spokesman, said on Wednesday.

Workers at Hyundai's affiliate Kia also voted in favour of a strike plan on Tuesday.

The strike might begin as soon as Tuesday, Kim said earlier.

While Hyundai is used to stoppages - workers have gone on strike in 22 of the past 26 years - the walkouts loom as the weaker yen gives Japanese carmakers an edge to cut prices or offer incentives on their models.

Hyundai's net income has fallen for three consecutive quarters, while analysts estimate Toyota Motor is headed for a record annual profit.

"If the union does walk out as planned, it will lead to a worse-than-expected third-quarter profit," Lee Sang-hyun, an analyst at NH Investment & Securities, said before the voting results were announced. "[Still,] it's unlikely the strikes would go on for long as the union won't risk giving up their bonuses, which are given only when workers meet production targets."