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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Kia’s labor union, an affiliate of the Hyundai Motor Group, is preparing a lawsuit against the company to demand retroactive payments related to regular wages.
According to the Kia branch of the Korean Metal Workers’ Union on Monday, the union will accept applications for participation in the legal case until January 24. The lawsuit is based on a Supreme Court ruling from late last year that recognized conditional regular bonuses as part of ordinary wages, demanding a recalculation of wages.
On December 19, the Supreme Court en banc ruled in favor of excluding the “fixed nature” requirement from the definition of ordinary wages in cases involving Hyundai Motor and Hanwha Life Insurance employees suing for back pay. This decision overturned the court’s 2013 stance, which acknowledged regular bonuses as ordinary wages but excluded bonuses with conditions like continued employment due to a lack of “fixed nature.”
The Kia union argues, “Labor Day is a statutory holiday, and unused annual leave is a statutory vacation, meaning payments should follow the legal standard of ordinary wages. However, the company has only been paying based on basic daily wages.” The union further asserted, “The Supreme Court’s December 19 ruling nullified the 15-day working condition, making it invalid. The company must normalize ordinary wage payments to include ‘basic pay + regular allowances + regular bonuses’ when calculating extended work, holiday work, night shifts, and other statutory allowances.”
To proceed with the legal action, the union plans to collect a fee of 70,000 KRW per member. Members can apply and consent to the lawsuit through an online process by January 24.
In response, Kia emphasized resolving the issue through mutual cooperation. The company stated in a reply letter, “It is necessary to first conduct an in-depth review to determine whether each allowance meets all the requirements for being considered part of ordinary wages, regardless of fixed nature. We find it regrettable that the ordinary wage issue is being revisited. From the perspective of labor-management cooperation, we propose resolving the matter amicably through the special consultation requested by the union.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
