Kia Motors Union Moves to Secure Right to Strike... Strike Action Vote Scheduled for Next Week

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The Kia Motors labor union has officially begun the procedure to obtain the right to strike.

According to industry sources on the 28th, the Kia Motors union held a delegates' meeting on the 26th and on the same day filed a dispute mediation request with the Central Labor Relations Commission (CLRC). If the CLRC issues a 'mediation suspension' decision after a 10-day mediation period, the union will gain the right to strike. The CLRC is expected to decide on whether to suspend mediation by the 4th of next month at the latest. The union also plans to conduct a strike authorization vote among all union members on the 3rd of next month.

If the CLRC issues a mediation suspension decision and more than 50% of union members vote in favor in the strike authorization vote, the Kia Motors union will obtain a legal right to strike.

Kia Motors held the 9th round of main negotiations on the 22nd but there was no significant progress. Hyundai Motor Company already reached a no-dispute settlement for this year's wage and collective bargaining last month with a 'wage freeze.'

The Kia Motors union is demanding a base pay increase of 120,000 KRW, a 30% distribution of operating profit as performance bonuses, extension of retirement age (from 60 to 65), expanded application of ordinary wages, and production of core parts for electric vehicles.

The union is also opposing Kia Motors due to the operating profit decline caused by quality costs related to the Theta2 engine amounting to over 1 trillion KRW. On the 27th, the Kia Motors union held a press conference in front of the Hyundai Kia Motors Group headquarters, stating, "Operating profit was expected to exceed 1.3 trillion KRW in the third quarter, but due to the decision to reflect quality costs, it sharply decreased to 195.2 billion KRW," and added, "The board of directors that decided on the big loss must take responsibility and step down."