Renault Samsung Labor and Management, Pre-Summer Vacation Wage and Collective Agreement Negotiations Fail

Negotiations Expected to Resume After August 9, Following End of Summer Vacation Period

[Image source=Yonhap News]

[Asia Economy Reporter Yoo Je-hoon] The labor and management of Renault Samsung Motors have failed to reach an agreement on wages and collective bargaining before the summer vacation.

According to industry sources on the 29th, Renault Samsung labor and management resumed the 11th round of main wage and collective bargaining negotiations the day before, but they adjourned around 11 p.m. without narrowing the gap on some key issues such as base salary.

As a result, Renault Samsung labor and management have effectively failed to achieve their goal of concluding the wage and collective agreement before the August vacation. Even if a tentative agreement is hastily prepared, there is physically not enough time to conduct a vote for approval or rejection before the vacation and to hold a signing ceremony.

The Renault Samsung labor union had previously demanded a base salary increase of 71,687 KRW and a bonus increase of 7 million KRW, while the Renault Samsung management recently proposed a lump sum payment of 8 million KRW, including the previously offered 5 million KRW and an additional 2 million KRW compensation for freezing the base salary.

The management emphasizes the business crisis situation with a deficit of 79.7 billion KRW last year, while the labor union argues that since the base salary was frozen in 2018 and 2019, freezing it again last year and this year would mean four consecutive years of freeze, and thus demands revisions.

Renault Samsung labor and management plan to resume the adjourned negotiations after the summer vacation period ends on the 9th of next month. A Renault Samsung labor union official stated, "We negotiated the details of the proposal until 11 p.m. the day before but failed to reach an agreement. The management also needs time to review the demands, and since it is physically impossible to reach an agreement before the summer vacation, we will resume the adjourned negotiations after the 9th of next month and continue discussions."