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Breakthrough Agreement Reached in Kia’s Wage Negotiations

Kia Motors Corporation has announced a groundbreaking agreement in its annual wage negotiations, marking three consecutive years of provisional accords.
South Korea
k 000270.KO Blue Chip 150
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The accord, reached at the 16th main negotiation event held at Autoland Gwangmyeong, Gyeonggi Province, addresses pressing concerns amid global uncertainties, including geopolitical tensions and economic fluctuations.

A significant amendment has been made to the contentious ’employment inheritance’ clause, a policy criticized for perpetuating hereditary employment practices. Rather than revising this provision directly, Kia has opted to hire 300 new employees, targeting the reduction of youth unemployment.

The agreement also outlines a strategic blueprint for future competitiveness. It emphasizes collaborative efforts between labor and management to ensure the successful construction and mass production of an upcoming factory. The initiative further entails joint ventures in expanding domestic investments for emerging industries and critical components in future vehicles, with the aim of securing a stable domestic supply chain in sync with evolving business strategies.

The wage package includes a 111,000 won increment in basic salary, comprising salary increases, a 300% management performance bonus coupled with an additional 8 million won, a 100% incentive for meeting production and sales targets, a special incentive of 2.5 million won, and provisions for traditional market gift certificates to stimulate the local economy. The settlement also encompasses a 250,000 won payment and 34 weeks of free stock for a dispute-free resolution.

Scheduled for a union-wide vote on the 20th, this accord marks a significant milestone in Kia’s labor relations and stands as a testament to constructive dialogue and cooperative decision-making.

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