Car Labor-Management Negotiations Stuck Without Breakthrough

[Image source=Yonhap News]

Decision on Strikes at Korea GM and Renault Samsung Soon

[Asia Economy Reporter Sung Kiho] Wage and collective bargaining agreement (CBA) negotiations at Kia Motors, Korea GM, and Renault Samsung Motors have yet to find a breakthrough. In particular, the labor unions of Korea GM and Renault Samsung Motors have secured the right to strike. Since they plan to decide soon on the level of their struggle, including strikes, this week is expected to be a turning point for the prolonged conflict.

According to the automotive industry on the 19th, the Korea GM union decided to set its struggle policy after reviewing the company's specific proposals at the 18th negotiation scheduled for the 21st. Along with this, the Korea GM union is conducting a signature campaign among all union members demanding "securing future development plans and withdrawal of unfair disciplinary actions that occurred during the negotiation process." They have also refused early clock-in and overtime work and decided not to undergo the Global Manufacturing System (GMS) evaluation, which assesses the manufacturing process. Currently, Korea GM management and labor are in conflict over the future development plan for the Bupyeong 2 plant. The union has been requesting production plans for the Bupyeong 2 plant since 2022, but the company maintains that decisions such as new car allocations cannot be made immediately.

The Renault Samsung Motors union, which has secured the right to strike, is also considering a union member vote on strike approval. The union plans to request the company to engage in main negotiations again while discussing the schedule of a general meeting with union members. Meanwhile, the Renault Samsung Motors Busan plant has been on temporary shutdown due to volume adjustments until this day.

Meanwhile, the Kia Motors union is opposing the Hyundai Mobis electric vehicle core parts plant to be established in Pyeongtaek and is demanding direct production within Kia Motors plants. Although negotiations have been held seven times so far, differences in opinion have not been narrowed.

An industry insider said, "Although Hyundai Motor Company management and labor reached an early agreement, the other companies remain at a standstill," expressing concern that "if extreme measures such as strikes are employed, negotiations could be postponed until next year."