Kia Motors Corp. approves a tentative labor deal after a three-month negotiation
Updated September 18, 2018
Earlier in the day, Monday, 27 August 2018, the labor union of South Korea’s No. 2 ranked automaker, Kia Motors Corp., announced a tentative labor deal for the upcoming year, 2019, has been agreed between them and the company’s unionized workers, thus concluding a three-month negotiation.
According to the labor union, nearly a third of the 26,464 union workers voted for the wage package and collective bargaining agreement, after nine rounds of negotiations.
Both sides reached an agreement to raise the standard monthly wage of workers by 45,000 won (US$40.4) and also additionally offering bonuses of almost 250 percent of basic pay plus 2.8 million won in extra compensation.
As per reports, The deal is set to come into effect in April 2019.
According to the agreement reached, Kia would create a standard wage reform committee for the purpose of tackling the dicey issue of illustrating to what extent bonuses should be considered as part of a worker’s regular salary.
The standard wage is a major concern because it acts as the base measure for severance payments and also calculating the pay rate for overtime.
Categories: Automotive News