Kia Motors Labor and Management Enter This Year's Wage Negotiations...Union Demands Future Car Employment Stability and Retirement Age Extension

First 2020 Labor-Management Negotiation Held at Sohari Plant on 27th
Second Negotiation on 1st Next Month... Likely to Introduce 'Untact' Following Hyundai Motor

Kia Motors Sohari Plant (Photo by Yonhap News)

[Asia Economy Reporter Kim Ji-hee] The labor and management of Kia Motors held a preliminary meeting on the 27th for the 2020 wage and collective bargaining agreement (wage and collective agreement) and officially began negotiations. Both sides agreed on the crisis situation caused by the spread of the novel coronavirus infection (COVID-19), but differences in positions on issues such as basic wage increases and a 450 billion won investment are emerging, making negotiations expected to be difficult.

The Kia Motors labor and management held the first negotiation for this year's wage and collective agreement from 2 p.m. at the main conference room of the Sohari Plant. The negotiation team consisted of 20 labor representatives, including Kim Ho-gyu, chairman of the Metal Workers' Union, and Choi Jong-tae, head of the Kia Motors labor union branch, and 20 management representatives, including Choi Jun-young, CEO (Vice President) of Kia Motors.

At the meeting, Vice President Choi stated, "We will proactively respond to COVID-19 quarantine measures," adding, "Considering the difficult reality caused by the COVID-19 situation, unlike previous years, we will engage in negotiations seriously through dialogue."

Head Choi said, "Both labor and management fully empathize with the difficult situation caused by COVID-19," and added, "We need to expand quarantine support for union members who have been leading domestic production and sales success." He emphasized, "Through a different negotiation method than usual, both labor and management need to make active efforts to quickly conclude the negotiations."

The Kia Motors labor union has finalized a demand that includes a basic monthly wage increase of 120,304 won and a performance bonus payment of 30% of last year's operating profit. Along with demands to raise various allowances, they are insisting that key parts for electric vehicles and hydrogen fuel cell vehicles be produced at Kia Motors factories. Additionally, how to reflect the Supreme Court ruling on the regular wage lawsuit, which favored the workers on the 20th, in this negotiation is also a major issue.

Head Choi emphasized, "After the Supreme Court ruling on regular wages, distrust toward the company among union members is widespread," adding, "The unpaid 400 billion won in supplementary payments must be invested for the future of union members, and the company must apologize for misleading public opinion at the time and fulfill its role."

Demands for employment stability, including the extension of retirement age, which is a contentious issue, also continued. He said, "Present active alternatives for the electrification module plant development and parts plant development directly linked to the future employment of union members," adding, "Furthermore, the burden of new hires should be resolved through retirement age extension, and solutions for the reinstatement of dismissed workers and the restoration of 30 minutes of overtime, which were unresolved tasks in last year's negotiations, should be prioritized."

After concluding the approximately 40-minute preliminary meeting, Kia Motors labor and management plan to hold the second main negotiation on the 1st of next month. Considering the spread of COVID-19, it is known that negotiations from the next session are likely to continue via 'untact (non-face-to-face)' video conferencing. Earlier, Hyundai Motors labor and management decided to introduce the untact method starting from the 4th negotiation held on the same day to prevent the spread of COVID-19.

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