Renault Samsung's labor union decides to strike indefinitely
Renault Samsung's labor union decides to strike indefinitely
  • Jung Jun-ho
  • 승인 2021.05.07 09:24
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Last year's wage agreement failed to be concluded, leading to a conflict

The labor-management conflict of Renault Samsung Motors, which is suffering from severe financial difficulties, is intensifying, with losses in 11 years.

 

Renault Samsung Motors Busan Plant / Courtesy of Renault Samsung

On May 4, Renault Samsung's labor union decided to hold an indefinite general strike against the management's partial work closure.

On May 4, Renault Samsung's Busan plant, located in Shinho-dong, Gangseo-gu, Busan, began a partial lockout from 7 a.m. "Work closure" refers to a dispute in which a user suspends the operation of a workplace to carry out his or her claim.

In response, Renault Samsung's labor union decided to hold a general strike until the company withdrew its partial closure and changed its negotiation-related attitude.

The union's full-scale strike is the second since April 30, and so far, it has fought for a strike with a fixed period, but it is determined to fight against it with an indefinite strike in the future.

In response to the union's decision to go on strike, the management conducted a partial closure of the company's jobs by putting in personnel who did not participate in the strike and wanted to work into the production line.

In addition to the union's all-out strike guidelines, 1,500 employees out of 1,900 employees from the Busan plant came to work to produce 203 vehicles. Output on this day is less than half of normal 440 units.

Renault Samsung's labor and management have yet to reach an agreement in last year's wage-collective agreement negotiations.

The labor union demanded a raise of 71,687 won in basic pay and 7 million won in encouragement, while the management offered a freeze on the basic salary, 5 million won in encouragement and variable pay, reinstatement of 290 workers on rotation leave, and a switch to two shifts in June.

"The basic salary has been frozen for four years despite the company's improved management conditions," the union said. "Some employees here went on strike because poor labor conditions have not improved, such as still receiving only the minimum wage."

On the other hand, the management says it cannot accept the union's demand at a time when costs are in dire need due to operating losses last year.

Renault Samsung said, "Over the past two years, a total of 186 strikes and 1,103 hours of sales losses alone amounted to 600 billion won. The service strike has caused a sharp drop in customer credibility, threatening the company's survival itself."

Last year, Renault Samsung produced 110,000 units, marking the first 79 billion won deficit in 11 years.

"If we miss this time, we will miss the opportunity to show our cars, and the future will be even more uncertain," said Dominique Signora, president of Renault Samsung. "Now is the time to face the real problem rather than short-term profits."


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