Renault Samsung Motors announced that on 22 September it concluded a wage agreement with its trade union for 2017. The trade union passed the tentative wage agreement, since 57.8% of the union members voted in favor.
The labor and management of Renault Samsung Motors made the first tentative agreement including a KRW 62,400 (USD 55.5) increase in monthly base payment, a performance bonus of KRW 4 million (USD 3,547), a bonus payment for concluding an agreement without strike of KRW 1.5 million (USD 1,330), an employment-ownership dividend of KRW 500,000 (USD 443), and a bonus for productivity increase equal to 200% of the monthly base payment. However, the tentative agreement was rejected by union vote.
The second tentative agreement, which added a Chuseok bonus of KRW 200,000(USD 177) and improved company welfare, was made on 19 August. The second vote was scheduled on 22 September; a total of 2,226 union members participated, with 57.8% voting in favor.
With the agreement, Renault Samsung Motors achieved a leading labor relationship which concluded wage agreement without any dispute for three consecutive years. The CEO of Renault Samsung said, “I would like to thank the trade union and all the employees who concluded the agreement without any disputes for three consecutive years. I would like to make Renault Samsung stronger so we can deal with the decrease in domestic demand and export, based on greater trust between us.”
Renault Samsung suffered a serious deficit amounting to KRW 200 billion (USD 177 million) per annum during 2011 and 2012. Both labor and management worked together to turn things around within 1 year, by 2013, representing. an extraordinary example of harmonized labor relations.