By Bae Ji-sook
Staff Reporter
A dispute between the labor union and management of Kumho Tires is deepening as the workers began a partial strike Sunday over the company’s program to shed jobs.
Workers at the Kumho Tires plant in Gwangju downed tools to protest the management’s plan to sack 18 percent of the workforce, or about 700 of its 3,960 factory workers. The action took place after 19 negotiation sessions failed.
The company in June suggested a wage-freeze, job sharing through cutting down work hours and five other plans to cut expenses. Kumho said the workers have performed sabotage, which has caused approximately 90 billion won ($73 million) in production losses.
The nation’s second largest tire maker has already posted a 98.2-billion-won loss in the first half of the year.
“We had various options asking the workers to share the financial burden, but if they refuse to take any responsibility, the only way is to shed jobs,” a Kumho Tires spokesman said, declining to be named.“The workers are paid an average of 66 million won a year, which is quite high compared to other companies. However, the company size is not even among the top 60 largest firms in the nation.”
The labor union said that the “job sharing” plan, which would cut working hours, would have meant a salary reduction of 20 to 30 percent.
“We already agreed to a wage freeze last year and this year, but the company wants more,” a union member said.
The workers said they will hold a massive protest in front of Gwangju Station on Wednesday if they cannot come to a “proper agreement.”
But the labor union does not rule out the possibility of striking a deal.
“We understand that the company is in trouble and we will continue to seek a settlement,” he added. The next round of talks is scheduled for today.
The company has reported its restructuring plan to the Ministry of Labor, and provided the labor union with a list of the 733 workers who will be laid off, Monday. It is also considering shutting down the plant should the conflict continue.
Kumho Tires has a 30-percent share of the domestic tire market, and accounts for a 2.5-percent share of the global market.