Hankook Tire announced that it finished the wage negotiations for this year on Sept. 8. According to the tentative agreement, the base pay of its manufacturing workers has risen by 5.8 percent, an incentive of 3 million won (US$2,517) will be paid to each of the manufacturing workers upon the conclusion of the final agreement, and base pay will additionally be increased by 2.4 percent. However, monthly paid leave has been eliminated.
Hankook Tire and its trade union engaged in 19 rounds of negotiations starting from June 16. By voting for the tentative agreement, the labor union of the company avoided a labor dispute for the 53rd year in a row after the establishment of the union back in 1962.
In the meantime, the gap between the average wages of Hankook Tire and Kumho Tires is predicted to widen more than before as a result.
At present, the trade union of Kumho Tires is going ahead with a month-long strike, and the management has opted for a lockout in response. The loss of each Kumho Tires employee that is attributable to the strike is estimated to be more than 2.5 million won (US$2,097).