[Asia Economy Reporter Ki-min Lee] Kumho Tire is experiencing difficulties surrounding labor-management negotiations, including the breakdown of the wage and collective bargaining agreement.
On the 19th, the Kumho Tire labor union issued a statement declaring the breakdown of the 2020 wage and collective bargaining agreement and decided to hold a union member vote on strike action on the 28th.
Kumho Tire labor and management have been conducting wage and collective bargaining negotiations for seven months since their initial meeting in July last year, but failed to narrow their differences.
The union demanded a wage increase (5.34%) following two consecutive years of operating profit, a reset of the bonus criteria after the acquisition by China's Double Star, and a reset of personnel reassignment.
The management argued that despite achieving an operating profit turnaround in the 10th quarter of 2019, difficulties have intensified due to accumulated deficits caused by the impact of COVID-19 and worsening management risks from U.S. anti-dumping tariffs.
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