Kia has prepared a tentative agreement on wages and collective bargaining for the fourth consecutive year without any disputes ahead of the Chuseok holiday. The tentative agreement includes a basic salary increase of 112,000 won, various performance bonuses, and a new compensation system corresponding to the job performance-based pay system.
On the 9th, Kia labor and management reached a tentative agreement at the 9th main negotiation held at Autoland Gwangmyeong. A vote by union members on the tentative agreement will be held on the 12th.
The key points of the wage-related agreement include a basic salary increase of 112,000 won (including step increments), a management performance bonus of 300% + 10 million won, a Kia 80th anniversary commemorative incentive of 100% + 2.8 million won, a special performance incentive for record-high achievements of 100% + 5 million won, and traditional market gift certificates worth 200,000 won to revitalize the local economy. It also includes the provision of 57 free shares as a joint labor-management effort to achieve the agreement without disputes.
Notably, this agreement includes a plan to provide differential allowances based on job category, work difficulty, and performance. Engineers and technical staff will have separate increase standards according to work difficulty, sales staff will receive an 8,000 won increase in sales allowance over the next five years, and general staff will receive differentiated allowances based on performance using the existing personnel evaluation system.
A Kia official said, "This agreement is expected to motivate employees and increase satisfaction with compensation by establishing a fair compensation system based on work difficulty and contribution."
Meanwhile, labor and management also agreed to hire 500 new production workers next year to secure employment stability and mid- to long-term future sustainability.
In addition, to secure competitiveness of domestic factories (Autoland), they agreed to promote the internalization of core parts for future vehicles in the mid- to long-term. They also agreed to efficiently respond to the global market and secure employment stability through optimizing production volumes and lineups at global production bases.
Furthermore, to address the socially pressing issue of low birth rates, they strengthened welfare benefits encouraging childbirth and reformed basic welfare systems, including health checkup programs, in line with the increasing average age of long-serving employees.
A Kia official said, "Labor and management agreed to quickly overcome the stagnation phase of the electric vehicle market caused by factors such as the chasm and to successfully transition to a future vehicle system to create a growing tomorrow together. Based on this agreement, we will unite our efforts to actively target the future vehicle market and secure competitiveness."
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