Renault Samsung Labor Dispute Intensifies... 8-Hour Full Strike Met with 'Partial Workplace Lockout' Response

Tense Tug-of-War Over 2020 Wage and Collective Bargaining Agreement Extends Past Year-End

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Je-hoon] The labor-management conflict at Renault Samsung Motors is escalating. As the labor union continues its strike during wage and collective bargaining negotiations, the company has even resorted to partial workplace closure.

According to industry sources on the 4th, Renault Samsung will implement a partial workplace closure from 7 a.m. until further notice. This is a countermeasure in response to the union's decision to carry out an 8-hour full strike on the same day.

Workplace closure is a dispute action where the employer suspends operations to enforce their position, and under the current "Labor Union and Labor Relations Adjustment Act (Labor Union Act)," it can be implemented only after the union's dispute action has commenced.

Renault Samsung's labor and management previously held eight main negotiations over wage and collective bargaining in 2020 but failed to reach any significant agreement. The union demanded a KRW 70,000 increase in base pay and a KRW 7 million bonus, while the company proposed freezing base pay and paying a KRW 5 million bonus, resulting in a stalemate.

In particular, the confrontation between labor and management has intensified recently amid restructuring. The union has stated that it will not continue wage and collective bargaining negotiations unless the company withdraws the suspension of operations at the AS service centers in Incheon and Changwon.

Meanwhile, Renault Samsung is currently in crisis, having posted a deficit of KRW 79 billion last year alone. In April, total sales, including domestic and exports, amounted to only 9,344 units, a 28.6% decrease compared to the previous year.

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