Ssangyong Motor, the sport utility vehicle maker owned by India’s Mahindra Group, has become the first Korean automaker to finalize this year’s wage bargaining. The company’s management and labor managed to finish the wage bargaining without a strike for the seventh consecutive year since 2010 for its early normalization.
Its union members voted on the tentative agreement on wages for two days from July 26 to 27 and 61 percent of them voted in favor of it.
The automaker, which started negotiations in May, reached a tentative agreement with its union on the 26th after 20 rounds of negotiations. The agreement increases basic pay by 50,000 won (US$44) per month, awards a one-time bonus of 4 million won (US$3,526) per worker and signs an MOU on future development prospect for employment stability.
The MOU includes Ssangyong Motor’s medium and long-term plans to develop new products for its future development and employment stability and to develop new markets for the improvement of its competitiveness. Moreover, its management and union have agreed to form a committee to discuss when to implement two consecutive shifts per day and how to improve the productivity.
Accordingly, Ssangyong Motor has concluded wage bargaining without disputes for seven straight years since 2010.