It Seemed to Be Resolving... But Stalled by 'Nono Conflict' in Car Negotiations

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The wage negotiations between Korea GM and Renault Samsung Motors, which seemed to be finding a solution, have encountered the adverse factor of labor union conflicts. Korea GM is facing divided opinions within its members regarding the vote on the tentative wage agreement, and Renault Samsung Motors is experiencing continuous discord as the union leadership takes strong measures to seize control. The situation is difficult to resolve, raising concerns that conflicts at both companies may become prolonged.

According to the automotive industry on the 31st, the Korea GM labor union will hold an expanded executive joint meeting in the afternoon to vote on the tentative wage agreement. The Korea GM union originally planned to report the tentative agreement at the expanded executive joint meeting on the 27th and conduct a member vote on the 30th and 31st, but the meeting was canceled, and the vote has not been conducted.

The expanded executive joint meeting on the 27th was reportedly canceled because hardliners within the union opposed the tentative agreement and did not attend. Their strong opposition remains, making the holding of the expanded executive joint meeting on the 31st uncertain. The union acknowledged responsibility for the confusion caused by the cancellation of the meeting in a newsletter on the 30th, stating, "We deeply regret the confusion at the workplace due to the cancellation of the expanded executive joint meeting" and pledged to "make every effort to promptly conclude the 2019 wage negotiations."

At Renault Samsung Motors, the wage negotiations have returned to square one as the union presented new demands, including the "joint resignation of labor-management negotiation representatives." The union leadership, which had shown a progressive stance in recent negotiations, brought forward new demands such as ▲increasing job allowances ▲integrating production and sales job groups ▲joint resignation of labor-management negotiation representatives instead of freezing the base salary.

Moreover, confusion has intensified as the union insists that performance bonuses intended for workers who did not participate in the strike should be distributed to those who did. The Renault Samsung first labor union recently sent official letters conveying this opinion to other in-house unions and the employee representative committee.

The union leadership's hardline stance is due to opposition from some union members and workers against unreasonable wage negotiations. On the 10th, some union delegates demanded swift negotiations through a statement, and the employee representative committee issued a similar statement the following day, the 11th. However, as the negotiations dragged on, the employee representative committee increased pressure by sending an official letter to the company on the 24th expressing willingness to accept the company's proposed wage agreement. This has led to speculation that the union leadership, feeling threatened in their control, shifted to a hardline position.

An industry insider pointed out, "The global automotive industry is struggling due to the novel coronavirus disease (COVID-19). Korea GM and Renault Samsung Motors are in a situation where new cars are receiving favorable responses for the first time in a while, so labor union conflicts could further threaten the companies' survival."

This content was produced with the assistance of AI translation services.