S.Korea Kumho Tires union launches strike

SEOUL, July 8 (Reuters) - Unionised workers at Kumho Tires Co Ltd (073240.KS), South Korea's No.2 tyre maker, on Tuesday launched a general strike to protest the company's plan to shed 431 jobs, the same day the firm announced a major U.S. order.

The latest action follows a partial strike by the union on July 2 over a wage deal and comes on the heels of news Kumho had signed a deal with Ford Motor Co (F.N) to supply some 200,000 tyres.

"We have no choice as the company plans to cut some 430 employees. We will continue to stop working until the company changes the plan," a union official told Reuters by telephone.

Kumho Tires plans to hold talks with the union to resolve the strike action as soon as possible, but will not accept the union's demand of zero job losses, a company official said.

"Given a tough environment, we cannot accept 100 percent of the union's proposal," the official told Reuter by telephone, asking not to be identified.

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

Shares in Kumho were down 1.4 percent to 8,350 won as of 0326 GMT, while the wider market dropped 2.8 percent.

Kumho supplies tyres as original equipment to not only local car makers such as Hyundai Motor Co (005380.KS) and Kia Motors Corp (000270.KS) but also to Germany's Volkswagen (VOWG.DE), Daimler AG's (DAIGn.DE)'s premium division Mercedes Benz and U.S. Chrysler LLC. (Reporting by Cheon Jong-woo; Editing by Keiron Henderson)