The management and union of Renault’s Korea unit have ultimately reached a wage agreement following a protracted labor strike focused on wages and working conditions.
Unionized workers at Renault Korea had been on a full-scale strike since September 13. Their demand included better wages and improved working conditions. The Yonhap news agency reported that after negotiations, the labor union held a vote on a tentative wage and collective bargaining agreement.
As much as, 50.5 percent of union members voted in favor of the deal, if agency is to quote.
The new wage package includes an 80,000 won ($59) increase in base salary, along with a 3 million-won performance incentive tied to the successful launch of the mid-sized SUV, Grand Koleos.
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With this agreement in place, Renault Korea is now likely to concentrate on the success of the Grand Koleos, which has already received a welcome in the market. With the sale of 3,900 units in its first month, the model made an impressive debut.
The unveiling took place at the Busan International Mobility Show in May and accounted for a significant portion of the company’s total sales of 4,980 units in September.
However, despite the success of the Grand Koleos, Renault Korea reported a 5.3 percent decline in overall sales last month compared to the same period last year, largely due to reduced exports. The company sold 8,625 vehicles in September, down from 9,105 units the previous year. While domestic sales surged more than threefold to 5,010 units from 1,651, exports plummeted 52 percent year-on-year, falling to 3,615 units from 7,454.
“Strong sales of the new mid-sized Grand Koleos SUV buoyed domestic sales last month,” the company stated.
Looking at the year-to-date figures, Renault Korea’s sales have decreased by 26 percent, totaling 64,656 vehicles from January to September, compared to 87,201 units in the same timeframe last year. Domestic sales rose 11 percent to 19,042 units, while exports fell 35 percent to 45,614 units.