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THE INVESTOR
July 21, 2019
Big Reunion

Automobiles

Renault Samsung, union sign tentative deal over wages

  • PUBLISHED :May 16, 2019 - 10:10
  • UPDATED :May 16, 2019 - 10:10
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Renault Samsung Motors and its labor union said on May 16 they have reached a tentative agreement over wages and working conditions, possibly ending their drawn-out labor dispute that was feared to undermine the automaker.

The labor union said its members will vote next week on whether to accept the deal.


The company and the union began negotiations in June last year to sign a wages and collective agreement deal. But they have had difficulties in narrowing a gap running deep between them.

Renault Samsung workers staged 62 rounds of strikes from October through April 19, resulting in production losses of over 14,320 vehicles. And the company temporarily halted operations at its only plant in Busan, 450 kilometers south of Seoul, several times due to its low utilization rate.

It is urgent for the company and the union to sign a wage and collective agreement deal in order to secure production volume for the SM3 and the XM3 for export to Europe, Renault Samsung CEO Dominique Signora said last month.

“We held all-night negotiations with the company and have signed a tentative agreement on a wages and collective agreement deal. Union members will decide on whether to accept it or not in a vote on May 21,” union spokesman Nam Ki-tae said over the phone.

Renault Samsung has offered about 12 million won ($10,000) per worker in bonuses for their contribution to the carmaker’s performance in 2018 instead of freezing the basic salary, the company said in a statement.

By Ram Garikipati and newswires (ram@heraldcorp.com)

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