The Strategist

Renault - Samsung - Motors alliance begins negotiations with striking workers union

01/23/2020 - 09:53

Two weeks of work at the South Korean plant in Busan were partially suspended, which cost the conglomerate more than $ 170 million.

The Renault-Samsung-Motors auto alliance factory in Busan has been partly in strikes since early January. The company was forced to cut production by temporarily shutting down night shifts. Two weeks of this regime resulted in production losses: 10,400 vehicles worth about 200 billion won ($ 173 million) did not get off the assembly lines.

In order to terminate the partial halt of the enterprise, managers of the alliance agreed to meet at the negotiating table in order to discuss wage requirements with the union.

"The company and the union will meet at the negotiating table on February 4-7 in order to reach agreement on wages for 2019," a company representative told Yonhap.

The agency reports that the union has already agreed to end the strike and all of their members are ready to return to work, so that production will be fully restored.

It is worth noting that it is not the first time that the automaker has to negotiate with the union. In May 2018, the parties also met at the negotiating table, again due to the issue of salaries. Then the agreement was concluded in June. It was the result of 62 rounds of strikes that cost the alliance 14,300 vehicles unreleased.


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