Renault Samsung to Hold Labor-Management Negotiation Meeting on the 6th of Next Month... Painful Talks Expected

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The labor and management of Renault Samsung Motors will hold a wage and collective bargaining meeting on the 6th of next month. Earlier, the labor union finalized demands including a basic salary increase and bonuses, indicating that this round of negotiations is expected to face considerable difficulties.

According to industry sources on the 30th, Renault Samsung Motors reportedly sent an official letter to the union on the 26th, proposing to hold the initial meeting on the 6th of next month.

Previously, the Renault Samsung labor union also finalized demands including a monthly basic salary increase of 71,687,000 KRW, a one-time payment of 7 million KRW as a bonus for overcoming COVID-19 and the launch of the XM3. Additionally, they plan to request integration of the wage system by job category and workforce expansion through the collective agreement.

The union's stance is firm. Especially, the current executive team, whose term expires at the end of this year, is showing a strong determination to secure a basic salary increase this time.

On the other hand, the management finds the union's demands burdensome. The concern has deepened particularly as the consignment production of Nissan's sports utility vehicle (SUV) Rogue has ended. The Nissan Rogue has been a model supporting half of Renault Samsung's export volume.

Renault Samsung is pushing for allocation of the XM3 as an alternative to the Rogue, but this is also not an easy situation. The Renault Group was supposed to finalize the production base for the XM3 by the end of last year, but has been deliberating for over half a year already.

Another point of tension is that Renault Samsung is pursuing cash acquisition through asset sales. Currently, among the 12 directly operated service centers, the company plans to sell some centers and has begun due diligence. In response, the union strongly opposed the reduction of sales bases and asset sales, holding a brief rally.

Moreover, with the impact of the novel coronavirus infection (COVID-19) deepening the crisis in the global automobile market, it is expected that both labor and management will continue a tense tug-of-war.

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