Kia Motors Accelerates Labor-Management Negotiations... Company Proposes 'Employment Stability' Focused Plan

Kia Motors Presents First Employer Proposal in Bulk at Main Negotiation on the 11th

[Asia Economy Reporter Suyeon Woo] Kia Motors has presented its management proposal for this year's wage and collective bargaining agreement (hereinafter referred to as wage and collective agreement), accelerating the negotiation discussions. With the management showing a first proposal emphasizing job security, there is also anticipation that the negotiations could be concluded as early as the beginning of next week.

According to industry sources on the 12th, Kia Motors delivered its management proposal for the first time during the 10th main negotiation session for this year's wage and collective agreement held the previous day. Kia Motors accepted the expanded operation of the 'Veteran Program,' which allows production workers who have reached retirement age to work under extended contracts for up to one year, and stated that while accepting changes in workforce management due to the paradigm shift in future vehicles, it will ensure that the employment of current employees is protected as much as possible based on reasonable discussions.

The union is demanding that Kia Motors propose a more definite extension of the retirement age, but since the management has presented the 'Veteran Program,' which is effectively a retirement age extension concept, it is expected that the wage and collective agreement discussions will gain momentum. Kia Motors has promised job security during the transition to the electric vehicle paradigm and will actively support job retraining, so discussions on the employment structure in the future vehicle era are also expected to proceed concurrently. Additionally, the proposal includes contributions to local community service funds and the establishment of a fund for joint growth with partner companies affected by the novel coronavirus infection (COVID-19), reflecting social contribution efforts.

Kia Motors Gwangmyeong Sohari Plant / Gwangmyeong = Photo by Hyunmin Kim kimhyun81@

The main points related to wages are summarized as follows: ▲basic salary freeze ▲100% performance bonus (50% immediately after agreement, 50% at year-end) ▲employee stock ownership plan payment upon no-strike agreement ▲special COVID-19 encouragement bonus of 1.2 million KRW. This is similar to the agreement Hyundai Motor Company reached in September. However, since Hyundai Motor Company increased the performance bonus and employee stock ownership plan payments compared to its initial management proposal before finalizing the agreement, it is highly likely that Kia Motors will also pay higher performance bonuses and encouragement bonuses than the proposal presented the previous day. If a wage proposal acceptable to both labor and management is decided, a final agreement without strikes is expected.

Previously, the Kia Motors union obtained a legal right to strike through the Central Labor Relations Commission's decision to suspend mediation and an internal union vote, but throughout the negotiation process, it repeatedly stated that "strike is not the ultimate goal, and there must be a reasonable proposal from management." Also, since Hyundai Motor Company, the 'eldest brother' of the Metal Workers' Union, achieved a no-strike agreement, the Kia Motors union faces social pressure in unilaterally proceeding with a strike. The Hyundai Motor union, which led a no-strike agreement this year, recently met with Hyundai Motor Group Chairman Chung Euisun to discuss mutual growth through labor-management cooperation. The union is showing a changed stance, prioritizing breaking social isolation and survival as its top priority.

Kia Motors plans to hold the 11th main negotiation session in the afternoon to continue coordinating on the management proposal presented the previous day. Since this negotiation is the first after the management presented a comprehensive proposal this year, this session is expected to be a turning point for concluding this year's wage and collective agreement.

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