Kia Motors Union to Conduct Partial Strike from 24th to 27th... Negotiation Possibility Remains Open

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The Kia Motors labor union held a strike countermeasure committee meeting on the 19th and decided to carry out a partial strike. However, by leaving open the possibility of negotiations with management, a dramatic settlement cannot be ruled out.

The Kia Motors union strike countermeasure committee held a second meeting in the afternoon and decided to conduct a partial strike for 4 hours during both day and night shifts from the 24th to the 27th. The union declared a breakdown in negotiations with management following the 13th main negotiation session on the 18th. In this regard, the union plans to hold a head-shaving protest by key executives and deliver a protest letter in front of the Hyundai Kia Motors headquarters in Yangjae-dong on the 20th.

Kia Motors stated that it will respond to the union’s decision based on principles. A Kia Motors official said, "We deeply regret that the union is pushing for a partial strike amid the reality of concerns over the resurgence of the COVID-19 pandemic," and added, "The company intends to respond to this partial strike according to principles." He also emphasized, "Amid growing social concerns and a sense of crisis, the union should withdraw the planned strike and promptly conclude the collective bargaining agreement through negotiations."

However, the possibility of a dramatic settlement still remains. A Kia Motors union official explained, "If negotiations proceed during the strike countermeasure committee meeting, the decision on whether to proceed with the strike has been delegated to the branch chiefs." This means that if negotiations continue after the strike begins on the 24th, the strike could be suspended. Accordingly, if both labor and management engage in active negotiations, the worst-case scenario of a strike can be avoided.

Labor and management at Kia Motors have held several collective bargaining negotiations this month but have yet to reach any significant agreement. In recent negotiations, management proposed a 150% performance bonus, employee stock ownership upon a no-strike agreement, a special COVID-19 incentive of 1.2 million KRW, and traditional market gift certificates worth 200,000 KRW. These terms are similar to those agreed upon by Hyundai Motor Company labor and management in September.

However, the union is demanding a base salary increase of 120,304 KRW and a performance bonus of 30% of last year’s operating profit. They are also advocating for the establishment of an eco-friendly vehicle parts factory within the company, a guaranteed 30 minutes of overtime, the introduction of a labor director system, expansion of the scope of ordinary wages, and extension of the retirement age. Additionally, the union criticizes management for setting aside a large-scale provision worth over 1 trillion KRW related to the Theta2 engine defect in the third quarter’s financial results this year.

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