Renault Samsung union goes on strike, management partially shutters factory

2021.05.04 13:45:11 | 2021.05.04 13:45:36

[Photo provided by Renault Samsung Motors]이미지 확대

[Photo provided by Renault Samsung Motors]

Renault Samsung Motors, the South Korean operation of French carmaker Renault S.A., on Tuesday partially shut down the company’s manufacturing facilities in response to the labor union’s decision to push ahead with a full-scale strike over wage dispute ahead of new rounds of official negotiations with the management due on Thursday and Friday.

Its unionized workers on Monday announced that it would lay down tools for eight hours on Tuesday to demand a wage hike ahead of the scheduled negotiations for 2020. It is the second eight-hour strike this year after Friday. On Monday, they refused to work for six hours.

The management also partially shuttered its plant on Tuesday in response to the union’s latest move before new rounds of wage negotiations. Under the new working arrangement, the company will allow only those who want to work against the unionized action to enter the factory to run part of the manufacturing line so that it can minimize output disruption of its XM3 crossover utility vehicles, which are shipped out to Europe under the name of New Arkana.

XM3. [Photo provided by Renault Samsung Motors]이미지 확대

XM3. [Photo provided by Renault Samsung Motors]

Renault Samsung Motors’s management and union have failed to settle collective bargaining terms for 2020 since last year despite nine rounds of negotiations.

Workers are demanding an increase of 71,687 won ($63.90) in the base monthly salary plus 7 million won of bonus compensation. The management proposed a freeze in the base salary, 5 million won bonus compensation, reinstatement of 290 workers on rotating leave and change in shift work.

Due to the repeated production disruption, Renault Samsung in April sold a total of 9,344 units at home and abroad, down 28.6 percent from a year ago. Domestic sales fell 50.4 percent to 5,466 units, while outbound shipments plunged 87.2 percent to 3,878 units. It sold 2,181 units of QM6 LPe at home and shipped out 2,961 units of XM3.

By Park Yun-gu and Lee Ha-yeon

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