Hankyung Research Institute: "Kia Motors' Ordinary Wage Ruling Will Continue to Cause Industry Confusion"

[Asia Economy Reporter Dongwoo Lee] The Korea Economic Research Institute pointed out on the 20th that confusion in the industry will continue following the final confirmation of a partial plaintiff victory in a wage claim lawsuit filed by about 3,000 Kia Motors workers against the company.

In a statement released that morning, the institute said, "In a situation where industrial competitiveness has deteriorated due to the national economic crisis caused by the spread of COVID-19 and structural changes in the automobile industry, the recent ruling on ordinary wages is expected to sharply increase unforeseen labor costs, raising uncertainties in corporate management."

It also evaluated, "Since no specific criteria have been presented for judging the difficulties in corporate management where the principle of good faith can be applied, confusion in the industry is expected to persist."

The Korea Economic Research Institute emphasized, "To prevent both labor and management from becoming victims due to the contraction of corporate management caused by the ordinary wage lawsuit, it is necessary to promptly prepare specific guidelines related to the application of the principle of good faith, as the essence of the ordinary wage controversy lies in legislative deficiencies, thereby reducing futile disputes."

Earlier that morning, the Supreme Court's First Division (Presiding Justice Kim Seon-su) confirmed the original ruling that partially ruled in favor of the plaintiffs in the wage claim lawsuit filed by about 3,000 Kia Motors workers against the company.

The Kia Motors workers filed the lawsuit claiming that regular bonuses, daily allowances, and meal allowances from 2011 should be included in ordinary wages to properly calculate overtime, night, holiday work allowances, and annual leave allowances.

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