Renault Samsung Labor and Management Conflict Over Shift to Single Shift System and Unpaid Rotational Leave Increase

2020 Year Wage Negotiations Still Pending... Disputes Over Cost-Cutting Plans Continue

[Asia Economy Reporter Yu Je-hoon] The labor and management of Renault Samsung Motors have yet to find common ground on cost-cutting measures such as switching the production line to a single shift and implementing unpaid rotational leave.

According to industry sources on the 11th, Renault Samsung's labor and management held an Employment Stability Committee meeting on the 9th and 10th to discuss unpaid rotational leave and the transition to a single-shift production line. According to the union, the management proposed implementing unpaid rotational leave from the 15th of this month until the end of May and changing the current two-shift system, which produces 45 units per hour (UPH), to a single-shift system producing 60 UPH.

These cost-cutting measures by Renault Samsung are interpreted as part of a 'survival plan.' After posting a loss for the first time in 11 years last year and experiencing a decline in vehicle sales, Renault Samsung prepared a high-intensity self-help plan called the survival plan and carried out voluntary retirement last month.

However, the union is opposing the management's proposal. Through a union bulletin, the Renault Samsung union stated, "Despite generating billions of won in profits since its inception, the management is forcing workers to make sacrifices due to last year's poor performance," and emphasized, "Even excluding the sales decline caused by COVID-19, the failure to offer products that meet market and customer expectations is not the workers' fault but a management failure."

Renault Samsung's labor and management plan to continue discussions by holding main negotiations and Employment Stability Committee meetings next week.

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