Kumho Tire Faces Strong Union Backlash Over Factory Flooding Holiday Pay Dispute

Disagreement on Wages During Heavy Rain on the 8th of Last Month
Kumho Tire "Based on Ministry of Employment and Labor Interpretation"

[Asia Economy Reporter Kiho Sung] Kumho Tire is reported to be facing strong opposition from its labor union for not paying suspension wages to the morning shift workers who left early during the factory flooding caused by the recent heavy rain. This decision has drawn attention as it comes at a time when the entire industrial sector is frequently experiencing factory shutdowns due to natural disasters such as typhoons, raising concerns about its impact on other companies.

According to industry sources and the Kumho Tire labor union on the 8th, when the Gwangju and Gokseong factories were flooded by heavy rain on the 8th of last month, Kumho Tire instructed the morning shift workers who had worked 8 hours of holiday labor to leave early (4 hours) and reportedly did not pay wages for those 4 hours. The affected workers number 169 at the Gwangju and Gokseong factories.

Kumho Tire’s decision is based on the 2000 administrative interpretation by the Ministry of Employment and Labor. At that time, early leaving by morning shift workers was considered a natural disaster and not a suspension, so there was no obligation to pay wages. This interpretation is based on Article 46 of the current Labor Standards Act, which states that there is no obligation to pay wages during suspensions caused by natural disasters or force majeure such as floods or typhoons.

In response, the labor union is strongly opposing the move, calling it a "wage cut." A union official said, "Until just before payday (the 27th), there was no mention, but suddenly the company posted a notice titled 'Company Position on Wage Application in Case of Factory Flooding,' stating that wages cannot be paid because there is no employer fault." The official criticized, "All employees came to work on the Sunday following the flooding to help restore the factory, and this decision by the company lowers the morale of the members."

Contrary to the company’s interpretation based on the Labor Standards Act, the union is countering with the collective agreement. According to Article 68 (Paid Leave) of the Kumho Tire collective agreement, "When it is recognized that attendance at the company and provision of labor is impossible due to force majeure natural disasters," paid leave must be granted.

On the other hand, the union is opposing the company’s decision as it does not comply with the collective agreement. Article 68 (Paid Leave) of the Kumho Tire collective agreement states that "When it is recognized that attendance at the company and provision of labor is impossible due to force majeure natural disasters," paid leave must be granted.

Kumho Tire has currently requested the Ministry of Employment and Labor to clarify ▲whether suspension wages must be paid during natural disasters ▲whether paid holidays should be applied according to Article 68, Paragraph 3 of the collective agreement during natural disasters and if only working hours should be paid ▲how many hours should be paid when workers come to work for 8 hours of holiday labor but leave early due to flooding ▲and whether weekly holiday pay must be paid during suspension caused by natural disasters.

The union has continuously opposed this by submitting a complaint to the Labor Office for "violation of the collective agreement." Additionally, since labor and management are currently negotiating wages and the collective agreement, this decision not to pay wages may become a source of ongoing conflict.

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