Renault Korea Motors Company, the South Korean unit of French automaker Renault SA, last week announced it had reached an agreement on wages and working conditions with its labour union, putting an end to a month of industrial action.
According to local reports, union members voted narrowly in favour of a new deal which included a KRW80,000 (US$59) increase in the monthly basic salary and a KRW3m (US$2,214) performance incentive relating to the successful launch of the company's latest model - the Geely-based Grand Koleos mid-sized SUV.
Renault Korea said the deal will allow it to get its sales back on track after a weak performance in the first half of the year, with the company looking to build on the initial sales success of Grand Koleos which was launched at the end of July. The model was first unveiled at the Busan International Mobility Show in May and has been received well in South Korea, with 8,880 sales in its first two months on the market. Renault Korea’s global sales fell by 26% to 64,656 units in the first nine months of 2024. Exports plunged by 35% to 45,614 units in this period, while domestic sales rose by 11% to 19,042 units – helped by the recent launch of the Grand Koleos.
