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(LEAD) Kumho Tire workers, management reach agreement in labor conditions

All Headlines 13:48 April 18, 2010

(ATTN: RECASTS lead; ADDS details from 2nd para)

GWANGJU, April 18 (Yonhap) -- Workers and officials at Kumho Tire Co. said Sunday they have reached an agreement in negotiations on working conditions, removing a major hurdle for the resumption of a stalled debt-restructuring program for the struggling tiremaker.

The two sides agreed to reinstate 189 fired workers on the condition that they promise to stick to the company's working rules, and management retracted a plan to sack an additional 1,006 employees that was underway as part of business restructuring efforts, they said. They also reached a deal on the extent of salary cuts and other working conditions.

The move came two days before the Tuesday deadline set by its creditors for the union to submit an agreement on workout plans, a condition required for the resumption of the debt rescheduling program, which has been stalled since workers voted against a tentative agreement on April 9.

The latest deal is also subject to a vote by union members.

On Dec. 30, Kumho Asiana agreed with its main creditor, Korea Development Bank (KDB), to put two of the group's units -- Kumho Industrial Co. and Kumho Tire -- under a debt rescheduling program to help ease a cash shortage sparked by the group's delayed sale of Daewoo Engineering & Construction Co.
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