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Kumho Tires Locked Out

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  • Published Aug 25, 2009 8:27 pm KST
  • Updated Aug 25, 2009 8:27 pm KST

By Bae Ji-sook

Staff Reporter

Kumho Tires imposed lockouts Tuesday on three of its plants nationwide in response to its labor unionists' strike against the company's downsizing plan. It's the first time in 15 years the nation's second largest tire maker has taken the drastic action of a shutdown.

The company began banning workers' access to plants in Gwangju, Gokseong in South Jeolla Province and Pyeongtaek in Gyeonggi Province, around 4 a.m. "We've had enough. The more we keep the machines running, the more the deficit snowballs," a Kumho Tires spokesman said, declining to be named.

The unionists and management started a 20th session of marathon negotiation, but failed to reach an agreement.

The unionists have stopped working since Sunday to protest management's plan to sack more than 18 percent of the workforce. The company sent the list of 733 workers Monday to the unionists, but the group refused to disclose the names.

Kumho Tires suffered from a 98.2 billion-won loss in the first half of the year. The Kumho spokesman said that these losses were heightened a sabotage led by the workers, which has caused approximately 90 billion won in production losses.

Since June, the company has been suggesting a wage freeze, job sharing through a reduction in work hours and five other plans to cut expenses. However, the unionists say that they have already agreed on a wage freeze for the past two years and job sharing has caused their actual wages to decrease by 20-30 percent. The unionists said they are willing to compromise. "The amount of the pay raise could be bargained and we will start working once a settlement is made," said a union official.

The company also said if the workers end the strike, they will resume the production. Kumho Tires has a 38 percent share of the domestic tire market, and accounts for a 2.5 percent share of the global market.

bjs@koreatimes.co.kr