Busan Transportation Corporation Labor and Management Reach Tentative Agreement in Collective Bargaining... Six Consecutive Years Without Labor Disputes

Busan Urban Railway Resumes Normal Operations
3% Wage Increase, Improvements to Severance Pay and Family Allowance Systems

Busan Transportation Corporation (President Lee Byungjin) announced that after six hours of negotiations at the final bargaining session with the Busan Transportation Corporation Labor Union (Chairman Choi Jeongsik) held at the Nopo Vehicle Depot on September 16, a tentative agreement was reached.

The agreement includes the following: a 3.0% wage increase in accordance with government guidelines; separate payment for the increase in statutory allowances due to changes in the scope of ordinary wages; retroactive wage payments and performance bonuses to be paid in January next year in consideration of the corporation's difficult financial situation; pro-rata calculation of years of service less than one year when calculating severance pay; and changes to the criteria for family allowances to match those of public officials.

With the changes to the severance pay and family allowance systems, all issues raised by the Board of Audit and Inspection, the Busan City Audit Committee, and the recommendations of the Anti-Corruption and Civil Rights Commission have been addressed. As a leading regional public enterprise, the joint labor-management efforts for transparent management are being recognized as a success.

Although labor and management could not initially narrow their differences regarding wage increases and working conditions, they reached an agreement through mutual concessions, taking into account the inconvenience to citizens in the event of a strike and the corporation's financial difficulties. With this tentative agreement, the Busan Urban Railway will operate normally from the first train on September 17.

The agreement is scheduled to be finalized after the union delegates' meeting and a general vote by union members. If ratified, the corporation will maintain its record of six consecutive years without labor disputes.

Lee Byungjin, President of Busan Transportation Corporation, stated, "This is the result of negotiations that put citizens first," and added, "We will continue to provide safe and convenient urban railway services based on a healthy labor-management culture."

Busan Transportation Corporation Signpost.