Partial strike with shortened work hours on 13-14th decided by Jangdae Committee
Conflicting positions over reduced new car discounts for retirees
[Asia Economy Reporter Choi Dae-yeol] The Kia labor union has decided to go on strike after failing to narrow differences in collective bargaining. The company completed wage negotiations last year without a strike for the first time in 10 years, but now plans to strike for the first time in two years, making production disruptions inevitable.
According to industry sources on the 12th, the Kia union held a dispute countermeasure committee meeting and decided on a partial strike by shortening working hours by 2 hours each for the morning and afternoon shifts on the 13th, and 4 hours on the 14th. They also decided to refuse production overtime. Previously, Kia labor and management held main negotiations from the 5th to the 7th, but they ended in final deadlock.
Earlier, after a preliminary meeting in late June, the company and union presented a first tentative agreement around the end of August, about two months later. However, it was rejected in a member vote in early last month. While the wage negotiation proposal received many approval votes, the collective agreement proposal was rejected with an approval rate in the low 40% range. According to regulations, both the wage and collective agreements must receive more than half approval to pass.
Last year, Kia labor and management agreed on negotiations without a strike for the first time in 10 years, but this year the possibility of a strike has increased. There is strong union member opposition to the revised collective bargaining agreement, and it is known that differences were not narrowed during negotiations after the rejection.
The main issue surrounding this year’s collective agreement revision is reportedly the plan to reduce new car purchase discounts for long-term retired employees. This clause allows employees who worked for more than 25 years and retired to buy new cars every two years with a 30% discount under a system called the ‘Lifetime Employee Card.’
The company proposed lowering the eligibility age to 75 and reducing the discount rate to 25%, while increasing welfare benefits such as vacation pay and housing support for current employees. However, some union members and retired employees strongly oppose this, saying that retreating on the collective agreement is unacceptable. In negotiations on the 7th, the company suggested allowing Lifetime Employee Card retirees to purchase electric vehicles starting in 2026, but the union rejected this.
With significant differences between labor and management and divided opinions within the union regarding this system, it is expected that negotiations will be prolonged. In previous years, even after the union decided to strike, there were cases where behind-the-scenes or main negotiations helped narrow differences, but this year it is reported that even that is not happening. Immediate production disruptions and delays in new car deliveries are expected. Some popular hybrid models still face delivery backlogs, with customers waiting more than a year and a half after ordering.
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