Car Industry Wage Negotiations, Will They Extend Beyond the Year?

[Image source=Yonhap News]

Korea GM and Renault Samsung Conduct Partial Strikes and Approval Votes

[Asia Economy Reporter Kiho Sung] Although the automotive industry is entering its peak season in the fourth quarter, it has been engulfed in 'union risks.' Among the major automakers, except Hyundai Motor and SsangYong Motor, Kia Motors, Korea GM, and Renault Samsung Motors have yet to finalize this year's wage and collective bargaining agreements, raising concerns that the negotiations might extend into next year.

According to industry sources on the 17th, the Korea GM labor union decided to carry out partial strikes for 4 hours a day from today until the 20th. The strike method involves both the day shift and the night shift workers striking for 4 hours each.

The union also conducted 4-hour partial strikes on the 30th of last month and the 2nd of this month, and further strikes were enforced on the 6th and from the 9th to the 13th. As a result, the Korea GM union has continued partial strikes for a total of 12 days. Among domestic automakers, Korea GM's union is the only one to have initiated strikes since the COVID-19 pandemic. Additionally, Kim Seong-gap, head of the Korea GM union, raised the level of confrontation by stating in the dispute committee meeting that day, following a prior statement, "We will build an all-out struggle against GM capital."

Korea GM management and labor have been negotiating the wage and collective bargaining agreement since their first meeting on July 22, but the talks remain at an impasse. In particular, the management proposed a two-year wage negotiation cycle with a performance bonus of 8 million KRW, but the union insists on maintaining a one-year wage negotiation cycle. The union is also demanding the allocation of new vehicles to the Bupyeong Plant 2 along with wage increases.

The Renault Samsung Motors union plans to hold a temporary delegates' meeting on the 18th and 19th to discuss the schedule for a union member approval vote on industrial action. Renault Samsung's wage and collective bargaining negotiations have been deadlocked since the 6th round of practical negotiations on September 6. Following the Central Labor Relations Commission's decision to suspend mediation, the union has legally secured the right to strike, and if the union member approval vote passes, they can immediately proceed with a strike.

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