Head-to-Head Tough Mode in the Car Industry

Korea GM Union Applies for Central Labor Relations Commission Mediation After Strike Vote Approval
Renault Samsung Aims to Resume Negotiations to Regain Bargaining Rights but Faces Long Road Ahead

[Image source=Yonhap News]

[Asia Economy Reporter Yu Je-hoon] As the largest labor union in the completed car industry, the Hyundai Motor Union has raised the flag of strike, labor unions in the same industry are also switching to a ‘hardline mode’ one after another. The Korea GM Union is raising the level of struggle by passing a strike action vote, and the Renault Samsung Motors Union, which has regained its negotiation representative status, is also preparing ahead of resuming negotiations with management.

According to the industry on the 8th, the Korea GM Union applied for labor dispute mediation to the Central Labor Relations Commission the day before. This is a follow-up measure after declaring a ‘temporary suspension of negotiations’ at the 10th negotiation with management on the 6th. The Korea GM Union plans to hold a Central Strike Countermeasures Committee on the 12th to discuss future response plans and then hold a rally on the 15th to reorganize its ranks.

The Korea GM Union, frustrated with sluggish wage negotiations, conducted a strike action vote from the 1st to the 5th, passing it with a 76.5% approval rate. If the mediation by the Central Labor Relations Commission is suspended, the Korea GM Union will secure legal strike rights.

The Korea GM Union, which has maintained a wage freeze for the past three years, is demanding a basic wage increase of 99,000 won, performance pay at 150% of the ordinary wage, and a bonus of 4 million won in this negotiation, but management is reluctant. This is because the company has been in deficit for seven consecutive years until last year and suffered production disruptions of about 30,000 vehicles in the first half of this year due to the shortage of automotive semiconductors.

The situation at Renault Samsung, which has not yet concluded last year’s wage and collective bargaining, is also difficult. The Renault Samsung Union regained its negotiation representative status as of the 5th and is preparing to resume negotiations, but the gap between the wage demands and management’s proposal is large, making smooth progress uncertain. Management demands a two-year freeze on basic wages and a bonus of 3 million won, while the union opposes, saying, "It means practically freezing the basic wage for four years following 2018-2019." The union is demanding a basic wage increase of 70,000 won.

Even if last year’s wage and collective bargaining is settled, the need to proceed with this year’s negotiations immediately is also a burden for management. In this situation, the Renault Samsung Union is recently re-pursuing joining the Korean Confederation of Trade Unions (KCTU). An industry official said, "Since the XM3 (export name New Arkana) exported to Europe is receiving a good response, production stabilization and quality control are more important than anything else at present," adding, "It is necessary to narrow the differences in position as soon as possible."

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