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Photo = Hyundai Motor |
[Alpha Biz= Reporter Kim Sangjin] Kia and Renault Korea Motors are facing prolonged labor disputes as wage and collective bargaining agreement (CBA) negotiations continue without resolution. The increasing risk of strikes adds to concerns as disagreements persist.
On the 20th, industry sources reported that Kia's labor union held a vote on a tentative agreement on September 12. While 53.7% of union members voted in favor of the wage agreement, 51.2% rejected the CBA proposal. As a result, negotiations between Kia's management and the union are expected to continue after the Chuseok holiday, with tensions likely escalating.
Initial expectations were for a relatively smooth agreement, as the proposed package included a record-breaking incentive offer of "500% performance bonus + 18 million KRW encouragement pay." However, resistance from some union members, particularly over the expansion of the performance-based pay system to general office workers, contributed to the rejection.
Additionally, dissatisfaction over the failure to restore lifetime employee benefits, such as vehicle discounts for retirees with over 25 years of service, is seen as a key factor in the CBA vote's failure.
Renault Korea Motors is also facing difficulties in reaching an agreement. Although the company and union drafted a tentative agreement on September 3, it was rejected in a union vote on September 6, with about 65% of union members opposing the deal. The rejected agreement included a basic salary increase of 73,000 KRW and a 3 million KRW bonus.
Since September 10, Renault Korea's union has been engaging in partial and full-scale strikes, disrupting the production of its new mid-size SUV, the 'Grand Koleos.' The labor impasse is expected to continue beyond September 20, with no further negotiation dates set.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
