Kumho union resumes work; firm withdraws job cuts

SEOUL, July 14 (Reuters) - Unionised workers at Kumho Tires Co Ltd (073240.KS), South Korea's No.2 auto maker, resumed operations on Saturday as the company withdrew a plan to cut 431 jobs, the company said on Monday.

The union members had staged a walk-out for four days since July 8 to protest against the company's job reduction plan and for a higher wage, which the company said caused the firm to lose 20 billion won in lost output.

Usually, unionised workers at South Korean companies make up lost output during labour actions with extra work.

"We agreed not to cut employees as the union agreed to raised productivity," a company official said by telephone.

Global auto industries have been hit by higher oil and raw material prices as a slowdown in the global economy was already dampening consumer sentiment.

Shares in Kumho were unchanged at 7,820 won as of 0121 GMT, underperforming a 0.55 percent gain in the wider market . (Reporting by Cheon Jong-woo; Editing by )