Hyundai Motor and Korea GM Tentatively Agree on Labor Negotiations... Kia and Renault Samsung Remain

Kia to Hold Strike Vote on 28th
Renault Samsung Resumes Main Negotiations After Three Months

[Asia Economy Reporter Yu Je-hoon] As Hyundai Motor Company and Korea GM labor and management have reached a tentative agreement in this year's wage and collective bargaining, increasing the likelihood of a dispute-free settlement, attention is now focused on the future direction of negotiations between Kia and Renault Samsung Motors labor and management.

According to industry sources on the 24th, Korea GM labor and management succeeded in preparing a tentative agreement at the 14th negotiation held on the 22nd, which includes a basic wage increase of 30,000 KRW (including seniority increment) and a one-time and incentive payment of 4.5 million KRW.

The agreement also includes content related to future development prospects, on which labor and management had previously disagreed. Notable commitments include extending the production schedule of models manufactured at the Bupyeong 2 plant as much as possible considering all relevant factors, and reviewing the extension of production for the Spark (M400) and vehicle engines at the Changwon plant.

Accordingly, Korea GM labor and management plan to conduct a tentative agreement approval vote among all union members on the 26th and 27th. If the majority of union members approve the agreement, this year's wage negotiations are expected to be finalized before the vacation season in August.

Hyundai Motor, the industry's 'eldest brother,' also prepared a tentative agreement early on. At the 17th negotiation on the 20th, Hyundai labor and management agreed on a monthly basic wage increase of 75,000 KRW, a performance bonus of 200% plus 3.5 million KRW, a quality improvement and accident prevention incentive of 2.3 million KRW, a special agreement for future competitiveness securing 5 shares, 200,000 points for the continuous two-shift system, and 100,000 KRW in traditional market gift certificates to revitalize the local economy affected by the prolonged COVID-19 situation.

In this negotiation, Hyundai labor and management also signed a 'Special Future Agreement on Industrial Transition Response.' This agreement states that for major new businesses such as Purpose Built Vehicles (PBV) and Urban Air Mobility (UAM), if market conditions, various regulations, production methods, and business feasibility are met, facility investments will be executed and priority mass production will be carried out at domestic plants.

Hyundai labor union will hold a vote on the tentative agreement on the 27th. If the majority vote in favor, Hyundai labor and management will conclude wage and collective bargaining for the third consecutive year without disputes.

Industry attention is now on the remaining negotiations between Kia and Renault Samsung labor and management. Unlike Hyundai, the eldest brother, Kia labor and management have yet to find common ground on various contentious issues. The Kia labor union already declared a breakdown in negotiations on the 20th and plans to hold a strike vote on the 28th to escalate their level of protest.

Renault Samsung, which has yet to even conclude last year's wage and collective bargaining, is also facing a challenging situation. Labor and management resumed the 10th main negotiation after three months on the 22nd, but it is uncertain whether they can achieve their goal of concluding negotiations before the summer vacation. The Renault Samsung labor union warned, "If the proposal presented at the 11th main negotiation is unsatisfactory, we will hold a strike vote and respond with a strong struggle."