Renault Samsung Union Secures Right to Strike... Next Week's Discussions Are a Turning Point

[Asia Economy Reporter Kiho Sung] The Renault Samsung Motors labor union has secured the right to strike and other legal dispute actions related to collective bargaining negotiations. Although the union has obtained the right to dispute, since approval procedures from union members are required, discussions next week when the Busan plant resumes normal operations are expected to be a turning point.

According to the automotive industry on the 18th, the Central Labor Relations Commission decided to suspend mediation on the 16th regarding the collective bargaining dispute between Renault Samsung Motors labor and management. The union had previously applied for dispute mediation to the commission on the 6th.

Following the commission's decision, the union has secured the right to dispute, but cannot immediately proceed with a strike. Legal strikes require procedures such as a union member approval vote. For now, the union plans to request the company to enter into main negotiations again and discuss the schedule for a general meeting with union members.

Renault Samsung labor and management held their first collective bargaining meeting this year on July 6 and conducted up to the 6th round of working-level negotiations on the 17th of last month, but negotiations have since stalled.

In this year's collective bargaining, the Renault Samsung union demanded a basic wage increase of 71,687 KRW and a lump-sum payment exceeding 7 million KRW. On the other hand, the management stated that wage increases are difficult due to the downturn in business caused by the COVID-19 pandemic. To adjust production volume, Renault Samsung Motors temporarily suspended operations at the Busan plant from the 25th of last month until the 18th of this month.

The Renault Samsung union is protesting that management is avoiding negotiations, while management insists that after setting a negotiation scope through additional working-level talks, main negotiations should begin.

If the Renault Samsung union chooses to strike, unpredictable chaos is expected to follow. Prolonged labor-management conflicts are also likely to affect the scheduled export of the XM3 next year.

Renault Samsung Motors sold a total of 7,286 units in September, including 5,934 domestic sales and 1,452 exports, achieving only 51.4% compared to the same period last year. In October, due to extended non-operating periods, a significant decrease compared to last year is anticipated.