Kumho Tire's Labor-Management Breakdown Leads to Lockout
Kumho Tire's Labor-Management Breakdown Leads to Lockout
  • By Lee Kyung-ho (info@koreaittimes.com)
  • 승인 2015.09.07 13:49
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Korea's large tire company Kumho Tire closed its operation following the breakdown of its management-labor negotiations.

The company said on Sunday, "If the overall strike of the labor union continues, it will bring about huge losses and damage to the company as well as partners."

It added that, "In a bid to minimize the additional loss and to protect employees who do not join the strike alongside the factory facilities, we inevitably closed the operation."

The company's labor union began its partial strike from Aug. 11 for the next four days. It waged the overall strike from Aug.17 to Sept.6.

The management presented a wage increase of 2,950 won a day (4.6% rise), wage peak system from 2016, a lump sum allowance of 3 million won in time for wage peak system and the increase in loans for non-homeowners.

The labor agreed to delay the period of the wage peak system but did not agree with other suggestions.

The sales loss caused by the strike is said to stand around 94 billion won. The damage to the employees also stands at 2.5 million won on average based on "No labor no wage" system. Kumho Tire also closed its operation in March 2011.


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