Demanding a 8.3% Wage Increase
The labor union of Nexen Tire’s plant in the Czech Republic announced through a local social network on Jan. 25 that it would go on strike on Jan. 31.
The labor union claimed that it had tried to narrow differences with the management over the past year with regard to a pay raise and other working conditions, but failed to reach an agreement.
The labor union asked for a wage increase of 8.3 percent, 6 percentage points higher than a 2.3 percent wage increase proposed by the management, on the grounds that the inflation rate dwarfed the management's offer.
If the labor union downs tools, it may disrupt Nexen’s tire supply to European automakers. The Czech plant is one of the Korean tire maker’s major overseas production bases. It supplies original equipment (OE) tires to European car brands such as Volkswagen, Skoda, Fiat, Renault, and Dacia. It also supplies replacement tires in Europe.
Meanwhile, Nexon Tire’s Czech plant was completed in August 2019 as a production base for the European market.