Kia Motors announced that it would reduce overtime work. Perception is that the company started to reduce labor costs when the company lost the ordinary wage lawsuit, resulting in a KRW 1 trillion (USD 886 billion) cost burden.
Presumably, the actual amount of wages will decrease without overtime work. The trade union of Kia Motors (affiliate of the Korean Metal Workers’ Union under the Korean Confederation of Trade Unions) is standing against management, stating that the decision is a unilateral management decision.
According to the trade union of Kia Motors, the base payment of a production employee who has been working 21 years as a regular employee is KRW 2.22 million (USD 1,975) per month. On top of the base payment, regular bonuses amount to KRW 2.17 million (USD 1,925), overtime pay (from extended work, holiday work, and night work) amount to KRW 524,535 (USD 465), and other allowances to KRW 690,905 (USD 612.60). The average total monthly wage is KRW 5.61 million (USD 4,979).
Considering the company stopped extended and holiday work, only payment for night work is included in overtime pay. The overtime payment will decrease to 320,000 KRW (283 USD), by 200,000 KRW (177 USD). The total annual decrease is KRW 2.4 million (USD 2,128).
The wage per annum before the company lost the ordinary wage lawsuit was KRW 67 million (USD 59,725). If the company halts extended and holiday work, the wage will decrease to KRW 65 million (USD 57,670).