Kumho Tire Announces Lockout Of Its Three Factories As Union Workers Continue Their Protest Against A New Pay System
South Korea's second-largest tire maker, Kumho Tire, has announced a lockout of its factories in Gwangju, Pyeongtaek and Gokseng starting Sunday amid the union protests, which has begun on Aug 11.
The company, through its lockout, is pushing unionized workers to accede to its peak wage system. But, until then, any worker who dares enter the factories without the company's approval will be subject to prosecution.
Korea JoongAng Daily reported on Monday that Kumho Tire has decided on the lockout on Sunday after 21 days of the longest-ever union strike over the new pay system that has led to production loss worth $78 million.
During the weekend's sixteenth negotiation, the management has proposed the union an increase in daily wage of 4.6 percent - the highest the company has given - and included a three million won compensation per worker as exchange for their agreement to the company's peak wage system in 2016.
The so-called peak wage system, wherein senior employees' salaries will gradually decrease as they near their retirement, is a labor market reform initiated by the Park Guen Hye administration following the extension of the retirement age in South Korea from 58 to 60.
According To Korea Herald in an article published on Sunday, the weekend's negotiations between Kumho Tire and its workers have been fruitless because of disagreements in the lump-sum amount supposedly given to compensate for the implementation of the wage system.
"We first proposed a 700,000 won bonus based on our sales in the first half of this year," says a spokesperson for Kumho Tire. "And then the remaining amount will be decided based on the sales in the second half. But the union didn't accept that, only demanding a fixed amount of 1.5 million won, regardless of the performance in the second half. That is the most contentious issue at the moment."
"The management is trying to push forward the peak wage system," points out a worker who is also a member of the union. "No matter how much bonus they provide us, we will never accept the current plan of the management for the peak wage system."
"The offer provided by management is an evil act," adds the workers, "meant to revise the employment rules in favor of management even if we don't agree on the peak salary system."
