South Korea/Government plans to amend regulation to limit wage disputes, following ruling against Kia Motors. The announcement, which was made on Friday 1 September, came one day after a South Korean court ruled that Kia Motors would have to pay more than 420 billion Won (311 million euros) to cover unpaid salary for the period 2008-2011. The decision includes certain bonuses, paid regularly, into workers’ base salary which is used to calculate pensions and overtime as well as paid holiday allowance. To cover the period up to 2017, Kia may have to fork out as much as 1 trillion Won (743 million euros). The company plans to appeal the decision. Close to 200 companies in the country are understood to be the subject of similar legal proceedings, brought forward by trade unions. Against this backdrop, the government plans to clarify what forms part of the base salary. Kia Motors is disappointed with the court’s decision, as it will significantly increase labour costs and hamper its competitiveness, which is already on the wane, and spice up the already fraught negotiations over salaries at the company.
gs, brought forward by trade unions. Against this backdrop, the government plans to clarify what forms part of the base salary. Kia Motors is disappointed with the court’s decision, as it will significantly increase labour costs and hamper its competitiveness, which is already on the wane, and spice up the already fraught negotiations over salaries at the company.
Sticking with South Korea, but this time focusing on Renault Samsung. While Kia Motors, as well as GM, have already suffered organised strikes as part of wage negotiations, Renault Samsung would have been proud of reaching an agreement on salaries without work being brought to a halt.
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