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Renault Samsung shut for day as orders weak

May 25,2019
Renault Samsung Motors stopped production for one day Friday for a “premium vacation,” which is granted by management for the purpose of adjusting production and is not related to the ongoing labor dispute.

The automaker said it also plans to halt production on May 31.

The company is adjusting its production volume due to reduced orders for the Nissan Rogue.

On Tuesday, Renault Samsung Motors workers voted against a tentative agreement proposed by management last week.

Under the tentative agreement, each Busan plant worker was to be paid 1 million won ($837) in bonuses and receive a 35,000 won increase in the monthly meal stipend, but their base pay would remain the same. The automaker was also offering 10.76 million won to each worker in performance-based pay.

The Busan plant currently employs around 2,300 workers.

In terms of working conditions, lunch times were to be extended from 45 minutes to 60 minutes. The automaker also vowed to hire 60 new workers and establish a committee to continue discussions on improving working conditions. It promised to invest 1 billion won to provide medical benefits to workers.

While 47.8 percent voted in favor of accepting the agreement, which was the first since negotiations started 11 months ago, 51.8 percent opposed.

On Thursday, a union representative sent a letter to management about resuming talks.

Although the date has not been decided yet, the union is hoping to hold a meeting next week.

BY KANG KI-HUN, LEE HO-JEONG [lee.hojeong@joongang.co.kr]


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