Kia Parts Supplier Howon Labor Dispute Temporarily Resolved... Steps Toward Normalizing Primary Production

[Asia Economy Honam Reporting Headquarters Reporter Lee Gwan-woo] The labor-management conflict at Howon Co., Ltd., a first-tier supplier to Kia Motors' Gwangju plant, which has been embroiled in controversy over union suppression, appears to be coming to an end.

The Metal Workers' Union of the Korean Confederation of Trade Unions announced on the 20th that Howon's labor and management had reached a tentative agreement in negotiations.

The union held a general meeting of its members at 10 a.m. that day to explain the tentative agreement and was reportedly conducting a vote for approval or disapproval.

Howon's labor and management held overnight negotiations starting the previous day and reached a tentative agreement.

The agreement includes the reinstatement of dismissed union officials, full guarantee of union activities, and mutual efforts to promote coexistence and a progressive labor-management relationship based on trust.

As a result, the union's occupation protest, which had continued for five days since the 16th, is expected to be disbanded.

The local automobile production industry, which had suffered disruptions in parts supply due to the occupation protest, is also expected to breathe a sigh of relief.

The Howon branch of the Korean Confederation of Trade Unions had occupied part of the production facilities at the Howon plant from 6 a.m. on the 16th, citing union suppression and poor working conditions.

As part of Howon's plant, which supplies parts such as car bodies to Kia Motors' Gwangju plant, was shut down, about 250 primary to tertiary suppliers, including the original contractor, suffered losses by halting or shortening operations due to parts supply disruptions.

Kia Motors' Gwangju plant estimated that the damage caused by production disruptions had reached around 200 billion won as of the previous day.

Howon's labor and management have been in conflict since last year over the legality of establishing multiple unions.

The union claimed that the management intervened in the establishment of multiple unions with the intent to dismantle the current union, and the Gwangju Regional Labor Office conducted related investigations and referred nine executives, including the CEO, to the prosecution.

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