Kia Overcomes Strike Crisis... Attention on Union Members' Second Vote Results on Tentative Agreement (Comprehensive)

Next Week Cooperative Member Approval Vote

[Asia Economy Reporter Kiho Sung] Kia labor and management have reached a tentative agreement on the collective bargaining proposal just before a strike. Accordingly, the partial strike involving a two-hour and four-hour reduction in working hours over two days starting from today has been effectively withdrawn.

According to the automotive industry on the 13th, Kia labor and management reached a second tentative agreement on this year's wage and collective bargaining at the 14th main negotiation held at Autoland Gwangmyeong. This came 44 days after the first tentative agreement was reached.

A Kia official stated, "By reaching the second tentative agreement without labor disputes, we have continued the no-strike atmosphere for two consecutive years."

Although the specific details of the agreement have not yet been disclosed, the main points of the first tentative agreement included a base pay increase of 98,000 KRW (including seniority increments), management performance bonus of 200% + 4 million KRW, production and sales target achievement incentive of 100%, special incentive of 1.5 million KRW for quality brand improvement, traditional market gift certificates worth 250,000 KRW to revitalize the local economy, securing funds for allowance increases, and the provision of 49 free shares.

In the second agreement, particularly regarding the collective agreement discussion on the "Lifetime Employee ID," which had been a point of contention between labor and management, the company’s proposed measures (limiting vehicle purchase discount eligibility to age 75 and providing benefits every three years) were maintained, with the addition of electric vehicle discounts starting in 2025.

Additionally, the agreement included a "future change-related agreement" stating that both parties will jointly strive to make the domestic factory (Autoland) a key hub for future car new businesses such as PBV. They also agreed on adjustments to the number of days for congratulatory and condolence leave and increases in condolence money, expansion of health checkup scope and types of tests, and an increase in early childhood education expenses. The second tentative agreement also included an additional 300,000 KRW increase in vacation pay.

Kia labor and management have been at odds over the "Lifetime Employee ID" system during this year's collective bargaining. Kia has provided lifetime vehicle discount benefits to retirees who have worked for more than 25 years.

In this year's wage and collective bargaining, labor and management reached the first tentative agreement based on changing the discount cycle from two years to three years and lowering the maximum discount rate from 30% to 25%. They also decided to limit the age to 75 in consideration of the social atmosphere regarding elderly drivers. However, union members strongly opposed these terms, and the first tentative agreement was rejected in a union member vote. Subsequently, the union declared a strike, leading to severe labor-management conflicts.

The vote on the second tentative agreement by union members is scheduled to take place next week. If both the wage agreement and collective agreement receive majority approval, this year's wage and collective bargaining will be finalized.

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