Kia Motors Union Approves 2019 Wage and Collective Agreement... 59.4% in Favor

[Asia Economy Reporter Suyeon Woo] The Kia Motors labor union conducted a vote on the '2019 Wage and Collective Agreement' tentative agreement and finalized the agreement with a 59.4% approval rate.

According to the Kia Motors union on the 18th, the vote held the previous day among 29,281 union members resulted in 16,575 votes (59.4%) in favor and 11,233 votes (40.2%) against.

With a majority of the total members agreeing, the tentative wage and collective agreement was finally approved. At the end of last year, Kia Motors management and the union agreed on a first tentative agreement, but it was rejected as the union's final vote showed a majority against it. The approved agreement this time is the second tentative agreement prepared through renegotiation between the union and management.

Previously, in the first tentative agreement, Kia Motors management and the union agreed on ▲ a 40,000 KRW increase in base pay (including step increases) ▲ performance bonuses and encouragement bonuses totaling 150% + 3 million KRW ▲ 200,000 KRW worth of traditional market gift certificates ▲ a 3 billion KRW contribution to the social contribution fund.

The additional items in the second tentative agreement include ▲ a 1 billion KRW contribution to the in-house welfare fund ▲ adjustment of holidays (changing work on March 2 to a holiday on May 4, creating a 6-day consecutive holiday) ▲ agreement to operate a joint labor-management TFT (Task Force Team) regarding overtime work.

The part that Kia Motors management and the union focused on in the second agreement was the agreement to operate the 'joint labor-management TFT regarding overtime work.' Kia Motors, facing risks from the ordinary wage lawsuit, had eliminated overtime work since 2017 due to concerns over increased allowances. As a result, the actual take-home pay decreased, leading the union to demand the 'revival of overtime.' Through the TFT operation, Kia Motors management and the union agreed to prepare specific improvement measures by the end of March.

The Kia Motors union plans to hold a signing ceremony for the wage and collective agreement with management on the 20th.