Park Jin-hai primarily focuses on K-dramas, entertainment shows and actor interviews. Beyond that, she also pens articles covering the broader arts scene, with a particular emphasis on classical music, dance and various aspects of lifestyle. Since joining The Korea Times in 2013, she has made significant contributions in the realms of hallyu (Korean wave), industry news and international affairs.
Kumho Tire union stages strike against wage system
By Park Jin-hai
Unionists of Kumho Tire, the nation’s second-largest tire maker, began their first full-day strike in three years Monday, as labor and management differ on a new peak wage system the company is trying to introduce.
About 3,300 workers of Kumho Tire's three production facilities in Gwangju, Gokseong and Pyeongtaek, staged an eight-hour strike.
In the annual wage talks, the company says it needs to adopt the peak wage system to raise competitiveness, while the unionists say the wage talks should be separate from the peak wage issue.
Under a peak wage system, employees must accept reduced salaries in return for a guarantee of employment until retirement. The system aims to allow the company to use the money saved to hire young workers.
“The company has been destroying the labor-management relationship by enforcing the peak wage system,” said the Kumho Tire chapter of the Korea Metal Workers Union during a press briefing at its Gwangju plant, Monday.
“We agree with the good cause of creating jobs for youth, but we think the decision on the new system should wait until next year.”
During the 16 negotiation sessions, unionized workers have demanded an 8.3 percent salary hike, along with allocation of performance-based pay for 2014 without any strings attached.
The company, meanwhile, has put offered a 1,900 won increase in daily pay and a 3 million won bonus on condition the peak wage system is accepted, as well as a one-year extension of the retirement age to 61 years.
Labor says, “The company claims that without the peak wage system it has no ground to persuade its creditors for the bonus payment,” the unions claim.
“The company has posted a record 358.4 billion won operating profit, and also has cash reserves of 640 billion won, which cannot be made without the sacrifice of workers. However, the company is not trying to share the profits with its employees.”
The strike will continue with no time limit.
Unionists staged a four-day partial strike last week, causing 8 billion won in lost sales, according to the company.
The latest stoppage at the Kumho Tire facilities could affect other local companies, including Kia Motors, whose production lines are in Gwangju.
The full-day strike is estimated to have cost 5.2 billion won in lost sales.
The company says the peak wage system is a must, but labor is trying to delay the decision.