Renault Korea Union to File Lawsuit Challenging Wage Peak System Validity

Invalidation lawsuit scheduled for next week

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The Renault Korea Motors labor union is planning to file a lawsuit against the management, claiming that the application of the wage peak system is illegal.

According to the completed car industry on the 12th, 55 current and former union members of Renault Korea are expected to file a lawsuit to confirm the invalidity of the wage peak system at the Busan District Court next week. They are seeking the return of wages not received due to the application of the wage peak system, with the amount claimed per person reportedly ranging from 20 million to 30 million KRW.

The union argues that the wage peak system should return the reduced wages for reasons including ▲ the excessive duration of wage reduction ▲ the system not aligning at all with the purpose of resolving youth unemployment ▲ and the lack of alleviation of labor intensity.

In the 2015 wage negotiations, Renault Korea labor and management abolished the seniority-based wage system and extended the retirement age from 55 to 60, introducing a wage peak system that reduces wages by 10% annually based on the previous year's wage. This was the first introduction of a wage peak system in the automotive industry.

Meanwhile, in May, the Supreme Court ruled that the 'wage peak system,' which reduces employee wages based on age, is invalid. However, it did not make an explicit judgment regarding the introduction of the wage peak system conditioned on retirement age extension.

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