The Kia Labor Union has gained the legal right to strike following a decision by the Central Labor Relations Commission to halt mediation.
According to labor sources and the Kia union, the commission announced its decision to cease mediation regarding wage and collective bargaining negotiations on the afternoon of July 27. After approximately three hours of discussions, it determined that the significant differences between the two sides made further mediation impossible.
Earlier, on July 23, the union conducted a vote among all members, resulting in an 82% approval rate (92.5% of voters) for a strike. With the commission's decision to stop mediation, the union now holds the legal authority to initiate a strike at any time.
This year, the union's key demands in the negotiations include a basic wage increase of 149,600 won, a performance bonus equivalent to 30% of last year's operating profit, the introduction of a 4.5-day workweek, and an extension of the retirement age to 65.
The two sides have engaged in six rounds of main negotiations and nine rounds of practical meetings in search of a compromise. However, the management's stance, which emphasizes the need to consider deteriorating domestic and international business conditions and the necessity for future investments, has led to a stalemate.
It is important to note that securing the right to strike does not mean an immediate strike will occur. The union plans to continue negotiations and practical discussions with management. If both sides can reach a dramatic agreement during the negotiation process, the possibility of an actual strike may be avoided.
To this end, the union will hold its first strike committee meeting on July 30 to discuss specific guidelines regarding the timing and method of any potential strike.
Meanwhile, Kia and its union have successfully concluded labor negotiations without disputes for five consecutive years since 2021. If this year's negotiations ultimately fail and the union proceeds with a strike, production disruptions are expected across the local economy, including at the Gwangju plant, a key facility for producing models like the Sportage and Seltos, as well as among parts suppliers.
* This article has been translated by AI.
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