Renault Samsung Motors Reaches 2020 Wage Negotiation Agreement with 55% Approval (Update)

Final Agreement Reached on 2020 Wage and Collective Bargaining Negotiations After Over a Year Since July Last Year

Renault Samsung Motors 2022 QM6

[Asia Economy Reporter Changhwan Lee] Renault Samsung Motors announced that the 2020 wage and collective agreement tentative agreement was approved with 55% support in the vote held by the Renault Samsung Motors Labor Union, the negotiating representative labor union, at the general meeting of union members on the 3rd.

In the approval vote conducted at the general meeting of union members on that day, out of a total of 1,896 eligible voters, a majority of 1,002 voted in favor, finalizing the agreement.

At the 13th main negotiation on the 31st of last month, Renault Samsung Motors labor and management held negotiations to integrate the 2020 wage and collective agreement and the 2021 wage negotiations for future survival and employment stability.

After continuing final discussions for a grand compromise, both labor and management narrowed differences on key issues, agreeing to freeze the base salary but provide a one-time compensation of 8.3 million KRW, establish a new TCF (Trim/Chassis/Final) allowance, and temporarily pay a labor-management harmony allowance as the main points of the tentative agreement.

During this negotiation process, both labor and management agreed on the fundamental premise that Renault Samsung Motors must further secure global competitiveness according to Renault Group’s Renaultution management strategy, and that profitability improvement is necessary for this, the company explained.

Additionally, in the harsh reality, they decided to seek cooperative labor-management measures rather than wasteful conflicts to ensure the successful completion of Renault Samsung Motors’ survival plan currently being implemented for future survival.

To this end, they set the period until the end of next year as a labor-management harmony period and agreed to jointly establish the foundation for transitioning to a cooperative labor-management relationship.

With the final settlement of the wage and collective agreement, the 2020 wage and collective agreement negotiations of Renault Samsung Motors, which had been ongoing for over a year since the initial meeting on July 6 last year, were concluded together with the 2021 wage negotiations.

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