just-auto.com

Renault-Samsung unions call for full-scale strike as talks fail

By just-auto.com editorial team | 6 June 2019

Talks between South Korean automaker Renault-Samsung and its labour union broke down this week after they failed to reach an agreement on wages and working conditions after months of negotiations.

The two parties have not set a date for renegotiations and unions are now calling on its members to go on "full-scale" strike to put further pressure on the carmaker.

Unions had demanded the company come up with an improved offer for wages and working conditions this week but Renault-Samsung stood by the offer its unions had already rejected – which included a KRW12m (US$1,170) bonus per worker for the company's performance in 2018 while unions were demanding a rise in basic salary. The company produced around 207,000 vehicles last year.

Renault-Samsung's global sales were down by more than 37% at 65,502 units in the first five months of 2019 from 104,097 units in the same period of last year.

The company, which is 80%-owned by France's Renault, estimates the labour dispute to have reduced output by some 14,000 vehicles since the dispute began and its performance is expected to continue to deteriorate as long as it fails to reach an agreement with unions.