Auto Industry After Summer Vacation, This Week a Crucial Point for Strikes

Kia, Korea GM, and Neuro Samsung Motors Expected to Enter Negotiations One After Another

[Asia Economy Reporter Changhwan Lee] Among domestic automakers, except for Hyundai Motor Company, none have reached agreements on wages and collective bargaining, and this week, when employees return from summer vacation, is expected to be a turning point for labor-management negotiations in the automotive industry.

According to the automotive industry on the 9th, the Kia union has decided to hold a strike vote among all union members on the 10th. The Kia union is demanding a base salary increase of 99,000 KRW (excluding seniority increments), a performance bonus of 30% of last year's operating profit, extension of retirement age (up to 65 years old), and reduction of working hours to 35 hours per week, but the company has not yet responded to these demands.

Accordingly, the Kia union declared a breakdown in negotiations on the 20th of last month and applied for dispute mediation to the Central Labor Relations Commission (CLRC), which decided to suspend mediation on the 30th of the same month. The Kia union plans to secure the right to strike through the strike vote and use it as a key card in the upcoming labor-management negotiations.

After the vote, the union is expected to hold a strike countermeasure committee meeting to decide on negotiation or strike schedules. The management is expected to discuss negotiation schedules with the union based on the results of the countermeasure committee.

Korea GM and Renault Samsung will also resume labor-management negotiations. Korea GM is in a situation where it must renegotiate after the tentative agreement prepared by labor and management was rejected in a union member vote last month.

Korea GM labor and management had reached a tentative agreement including a base salary increase of 30,000 KRW and a lump-sum payment of 4.5 million KRW, but the union members voted against it with 51.15% rejecting the proposal in the vote held on the 26th and 27th of last month.

The union plans to hold an expanded executive joint meeting on the 10th to discuss countermeasures following the rejection of the tentative agreement, including resuming negotiations with management.

Renault Samsung, which has yet to conclude last year's labor-management agreement, is also expected to resume negotiations this week. The management proposed a lump-sum payment totaling 8 million KRW, including a 2 million KRW compensation for freezing base salary for 2020 and 2021 combined, and an average productivity incentive of 2 million KRW per person, but the union is demanding more items, making agreement difficult.

An industry insider said, "As the automotive market conditions improve compared to last year, conflicts between labor and management seem to be intensifying compared to last year," adding, "There are concerns about production disruptions and damages due to prolonged negotiations and strikes."

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