Kia Takes a Breather from Strike, Will They Reach a Dramatic Agreement?

Agreement to Resume Negotiations on the Afternoon of the 17th... Normal Work Resumes
Revised Priority Hiring and Wage System Including Allowances
Differences in Labor-Management Views Persist
Partial Strike Risk Remains from the 18th to 20th

The Kia labor union decided not to proceed with the strike it had announced on the 17th. Initially, they had planned a partial strike for four days starting from that day, citing the breakdown of this year's wage negotiations as the reason, but the union accepted the company's request to resume negotiations. Attention is now focused on whether they will reach an agreement as they return to the negotiating table.

According to a summary of the labor-management talks, the company agreed to maintain normal work operations without a strike by scheduling the 16th round of negotiations that afternoon. The Kia union had announced last week that they would strike partially due to the failure to narrow differences with management during negotiations. However, they added a caveat that "normal work will be maintained on days when negotiations take place."

Kia Gwangju Plant Entrance

Originally, they had planned to strike for about 4 to 6 hours during day and night shifts for four days from the 12th and 13th of last week and from the 17th to the 20th this week. However, despite the strike decision, negotiations have continued with difficulty, and the production lines have not actually stopped yet.

The company presented specific proposals including wage increase plans, new business initiatives, and improvements to the reemployment system, but some issues remain contentious, making it difficult to reconcile differences. The company requested the union to amend a clause related to priority employment in the collective agreement. Since the current clause, which prioritizes hiring children of long-term employees and retirees, is illegal, it needs to be revised.

Previously, the government issued a corrective order to amend the collective agreement but, due to non-compliance, brought the labor and management to court. The company proposed linking the amendment of this clause with the recruitment of new employees. The union countered that the clause is already obsolete and, since it involves amending the collective agreement, it should be addressed in next year's collective bargaining.

Hyundai Motor Company and Kia Headquarters Building in Yangjae-dong, Seoul. Photo by Jinhyung Kang aymsdream@

The company's proposal to restructure the wage system and suggest that no further discussions be held regarding late-night compensation allowances if an agreement is reached this year also provoked the union. The company introduced the current allowance system in 2012 when it adopted a continuous two-shift daytime system, but it has not applied this to new employees, leading the union to claim it has been a dual wage system.

In response, the company proposed creating an integrated allowance and providing additional payments to new employees, suggesting that this would conclude the discussion. The union stated that although it is reported as a benefit for the MZ generation, it is actually another form of discrimination and cannot be accepted.

Votes are being counted in the tentative agreement vote for Hyundai Motor Company's labor-management negotiations last month.

The difficulty in reaching an agreement between Kia labor and management is interpreted as the result of complex intertwined issues. Regarding the revision of the priority employment clause, which has been criticized as "employment inheritance," Hyundai Motor labor and management abolished it in 2019, with the union taking the initiative. The agreement last year between Kia labor and management to reduce the lifetime discount system for retirees also caused dissatisfaction among union members. Despite accepting management's demands, the union was criticized for not securing tangible benefits. Since the current union executive term ends this year, factional struggles within the union ahead of the upcoming election are also believed to have played a role.

Although the strike scheduled for the morning of the 17th was withdrawn, the strike planned for after the 18th remains valid. If no tentative agreement is reached during the negotiations on the 17th or if additional negotiations after the 18th are not confirmed, the likelihood of proceeding with the strike as originally announced is high. If the Kia union goes on strike, it will be the second strike at a completed vehicle plant this year following Korea GM. For Kia, it will be the first strike in three years since 2020.

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