There are also signs of conflict between labor and union ahead of the year-end election.
Kia’s labor union has decided to completely suspend production special work (overtime work) at three major finished car factories (Gwangmyeong, Hwaseong, and Gwangju), including powertrain (PT), as of October 1 . There are concerns that if overtime work is stopped, production of popular models such as the recently released new Sorento will be disrupted.
According to the Kia Motors branch of the Korean Federation of Trade Unions (KCTU) and the Korea Metal Workers’ Union (Kia Union) on the 19th, the union convened an emergency executive meeting of branches and branches the day before, presided over by Branch Manager Hong Jin-seong, and announced that special production work would begin from the 1st of next month. decided to discontinue. In addition, the union plans to hold an emergency resolution meeting of the standing executive committee members and exercise its power, including a general strike, until the union’s demands are met.
If Kia’s labor union suspends overtime work or goes on general strike, production disruptions for the new Sorento, Carnival, and Seltos are inevitable. The KIA union went on strike for 4 hours a day for 2 days last May in accordance with the strike guidelines of the Metal Workers’ Union. At the time, Kia announced that production had been disrupted at all domestic business sites. Approximately 2,700 units were affected. The daily production capacity of Kia Gwangju Plant (Autoland Gwangju) exceeds 2,100 units.
The Kia union’s decision to suspend overtime work was made after Branch Manager Hong tore up the company’s proposal and stormed out of the negotiation room just 10 minutes after the 10th main negotiation began on the 14th. Branch Manager Hong said, “If the company continues to behave irresponsibly, we clearly warn that all responsibility for what happens thereafter will lie with the company’s insincere negotiating attitude.”
The Kia union is demanding an increase in basic salary of 184,900 million won (excluding pay raises) and 30% of last year’s operating profit paid as performance bonus (approximately 2,169.9 billion won, average of 60 million won per union member). In addition, the demands included extending the retirement age, recruiting new personnel, subsidizing overtime work, and expanding welfare. Other issues include producing follow-up models to discontinued models and attracting in-house factories for core parts for eco-friendly vehicles to stabilize employment in the dynamometer ( PT ) sector
The company’s position is that it is difficult to increase the basic salary beyond that of Hyundai Motors토토사이트. The performance bonus request is also considered excessive. The company also maintains its position that, as a prerequisite for negotiations, the employment hereditary clause in the collective agreement must be deleted or equivalent measures must be taken. The employment hereditary clause provides for preferential hiring of one immediate family member of a union member who died from an illness while employed, children of those who have retired at full age, and long-term employees with more than 25 years of service.
A labor official said, “Like Hyundai Motors, the size of the performance bonus is the key to negotiation for the Kia union,” and added, “It appears that extending the retirement age is a preliminary step to receive as much performance bonus as possible.”
There are also predictions that in the worst case scenario, a conclusion to Kia’s labor-management negotiations will be reached after the Chuseok holiday. This is because there are signs of conflict between labor and union ahead of the union executive election at the end of this year. In a recent newsletter, the Kia union said, “The field is being bruised by emotional battles and revelations between manufacturing organizations aimed at the (union executive) election, and unreasonable claims aimed at damaging the union.”