"Need to Recover Losses from COVID-19"... Auto Industry Uneasy Amid Union's Chain Strike Movements

[Image source=Yonhap News]

Korea GM Union to Strike for 4 Hours on the 30th and Next Month's 2nd
Kia Motors and Renault Samsung Motors Unions Also Secure Right to Strike

[Asia Economy Reporter Kiho Sung] Following Korea GM, the labor unions of Kia Motors and Renault Samsung Motors are moving toward strikes. As the industry needs to focus on exports to make up for the difficult first half of the year due to the novel coronavirus disease (COVID-19), the prospect of consecutive strikes is raising tensions within the industry.

According to the industry on the 31st, the Korea GM union decided through the Central Dispute Countermeasure Committee on the 29th to strike for 4 hours each on the 30th and the 2nd of next month. Along with this, they plan to continue refusing overtime and special work.

This decision by the Korea GM union marks the first strike by a completed vehicle manufacturer since the spread of COVID-19.

Korea GM labor and management have conducted 21 rounds of wage and collective bargaining negotiations since July this year but failed to reach an agreement. The union is demanding a monthly base pay increase of about 120,000 KRW and performance bonuses exceeding 20 million KRW. The management, emphasizing six consecutive years of losses, proposed a monthly raise of 22,000 KRW. They also suggested adjusting the collective bargaining negotiation cycle to two years and offered performance bonuses of 2.2 million KRW this year and 2 million KRW next year, but the strike proceeded nonetheless.

As the full-scale strike begins in the automotive industry, tensions are rising. The Kia Motors union filed a dispute adjustment request with the Central Labor Relations Commission on the 26th, entering the strike process. On the 3rd, they will conduct a strike vote among all union members.

The Kia Motors union is demanding the in-house retention of electric and hydrogen vehicle parts failures, a guarantee of 30 minutes of overtime, the introduction of a labor director system, and an expansion of the scope of ordinary wages, with little progress in negotiations.

Renault Samsung Motors has also seen negotiations stall since the 19th. Especially with the union executive election scheduled for next month, it is difficult to proceed with negotiations. The Renault Samsung union has already secured the right to strike following the Central Dispute Mediation Committee's decision to suspend mediation on the 16th. However, with the union executive election approaching next month, it is difficult to hold a general meeting of union members, making an immediate strike unlikely.

Industry insiders expect the first week of next month, when each union’s strike plans become concrete, to be a turning point. An industry official said, "Next week, the strike actions of each union are expected to intensify," adding, "Since the issues are related to collective bargaining negotiations at all three companies, conflicts may continue beyond the new year."