Kia's First Strike-Free Year in 10 Years: "Joint Effort for the Future Car Era" (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporter Changhwan Lee] Kia labor and management have reached a tentative wage agreement this year without a strike for the first time in 10 years.

On the 24th, Kia labor and management succeeded in preparing a tentative wage agreement at the 13th main negotiation held at Autoland Gwangmyeong (formerly Sohari Plant).

The company explained that this was the result of mutual agreement that overcoming uncertainties amid crises such as the spread of COVID-19 and the shortage of automotive semiconductors, and joint labor-management efforts are essential in line with the era of future car transformation.

The tentative agreement includes a basic wage increase of 75,000 KRW (including regular seniority increments), a performance bonus of 200% + 3.5 million KRW, a special incentive of 2.3 million KRW, traditional market gift certificates worth 100,000 KRW, and the provision of 13 shares of stock.

Among the performance bonuses, 100% + 3.5 million KRW and the special incentive will be paid immediately upon agreement, and 100% will be paid at the end of this year.

In this agreement, labor and management signed a 'Labor-Management Win-Win Agreement for Responding to Future Industrial Changes.' This agreement includes joint efforts to secure employment stability for employees and future competitiveness by proactively responding to changes in the automotive industry paradigm and the restructuring of the 4th industrial revolution.

To ensure employment stability and strengthen future competitiveness of employees, the plan includes an investment of 29 trillion KRW by 2025, as well as the future direction of domestic Autoland (Gwangmyeong/Hwaseong/Gwangju) in preparation for the expansion of the future eco-friendly vehicle market, such as converting to eco-friendly vehicle exclusive plants and investing in multi-product production facilities.

Additionally, the agreement includes support for job training to adapt to future changes and strengthening co-growth with partner companies to secure competitiveness in the automotive industry.

They also agreed to improve welfare environments. This includes expanding employee discounts when purchasing the first car, supporting interest on student loans, changing the weekday extended working hours standards for general and research positions, and implementing employee stock ownership plans to promote asset accumulation and company loyalty.

In this negotiation, the company maintained a 'not acceptable' stance on some demands such as extending retirement age and reinstating dismissed workers.

A Kia official stated, "In the reality where management uncertainties have intensified due to the resurgence of COVID-19 infections and semiconductor supply issues, labor and management were able to find a compromise by making concessions step by step," adding, "We will do our best to continue the sales growth momentum centered on popular products such as the dedicated electric vehicle EV6 and Sportage."

The Kia labor union plans to conduct a vote among union members on the tentative agreement on the 27th. If the majority approves, the tentative agreement will be finally ratified.