UPDATE 1-Kia Motors, union reach tentative wage deal

(Updates with shares, production losses)

SEOUL, Sept 10 (Reuters) - Kia Motors Corp (000270.KS), South Korea's No.2 auto maker, said Wednesday it had reached a preliminary wage deal for the year with its union.

But unionised workers at affiliate Hyundai Motor Co (005380.KS) decided to stage partial strikes from Wednesday to Friday as they failed to reach a similar agreement with the company, a union official said.

After the news, shares in Kia rose 0.72 percent to 14,000 won as of 0120 GMT, while Hyundai, South Korea's top auto maker, fell 0.55 percent, both compared to a 0.31 percent slide in the wider market .

Kia's deal, which still needs to be approved by union members, includes a 5.6 percent rise in base salaries, a one-off payment to each employee of 3 million won ($2,740) and an annual bonus of 300 percent of monthly salary, Kia said.

The tentative agreement came after union members staged eight partial strikes since July 2, costing Kia 16,676 vehicles in lost output, according to the company's updated estimates.

But union members usually make up production losses with overtime work once they reach wage agreements.

Unionised Kia workers will hold a vote to approve the deal on Thursday.

But Hyundai's union, which vetoed a tentative wage deal last week, plans to stop work for six hours on Wednesday and Thursday, and for four hours on Friday.

On Tuesday, unionised workers at GM Daewoo Auto & Technology Co, the South Korean unit of General Motors Corp GM.N approved a preliminary agreement on wages and working conditions for this year. ($1=1094.7 Won) (Reporting by Cheon Jong-woo and Park Ju-min; Editing by Jonathan Hopfner)