Kia Reaches New Labor Accord Guaranteeing
Job Security and Normalization of Production Operations
- A turning point marking a new labor-management relationship
- Guarantee of job security for all current employees
- Union membership committed to ending labor dispute to normalize operations
The four core companies of the Kia Group -Kia Motors, Asia Motors, Kia Motor
Sales and Asia Motor Sales-have reached a new labor agreement which paves the
way for a normalization of operations. Under the terms of the agreement signed
at the Sohari Plant on March 17, Kia will guarantee job security while labor
extended its commitment to end all work stoppages.
"The only way of repaying our customers for their loyalty and support is to
realize the normalization of operations at each companies by the earliest
possible date through greater effort for management reform, sales promotion
and quality improvement," the joint announcement said.
The establishment of new labor-management relationship is indispensable for
the fulfillment of such responsibilities and goals," the two sides agreed.
Kia President Kim Soo-Joong welcomed the new agreement and promised his full
support. "I wish to thank our labor union for their commitment and I will do
my best to develop our labor-management relationship into a model for the in-
dustry," he said.
Until recently, the Kia labor union and management have been locked in a
confrontation over the key issues of job security and payment of overdue
wages that arose during the bankruptcy period. However, both parties agreed
to meet halfway in an effort to understand each other's positions and to
tackle the challenge of restoring the company back to health.
The highlights of the agreement are as follows:
· Management extends a guarantee of job security to all current employees.
· Management will pay a 500 percent bonus this year.
· Wage in 1999 are to be frozen at last year's levels.
· The union promises to end work stoppages.
Kia union's commitment to end all labor disputes is expected to have a
positive influence on the company's ongoing negotiations with suppliers who
have been hard hit over the past year.
Supported by a new labor accord, Kia management is now ready to accelerate
the normalization of operations.