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Renault Samsung Motors Reduces Production Volume by 25%
No Plan for Forced Layoff
Renault Samsung Motors Reduces Production Volume by 25%
  • By Jung Min-hee
  • October 8, 2019, 08:59
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Renault Samsung Motors has reduced the production volume of its plant in Busan City by 25 percent.

Renault Samsung Motors reduced the production volume of its plant located in Busan City by 25 percent, starting from Oct. 7, by producing 45 instead of 60 cars per hour. The company is considering various measures regarding idle workforce management.

It received applications for voluntary retirement from Sept. 6 to 27 and approximately 40 employees submitted their applications during the period. Its idle workforce is estimated at around 400 and the company is not planning on any forced layoff.

The measures include job relocation, an extended leave and non-renewal of contracts with contract workers. In fact, the company temporarily stopped its production on Oct. 4 by providing a paid leave. In addition, a one-week paid leave was provided in April and May this year for the purpose of production volume adjustment. The company’s production conditions have deteriorated this year due to a decrease in the production of the Nissan Rogue SUV and a delayed new model assignment from the Renault headquarters. Renault Samsung Motors produced 110,446 cars from January to September this year, down 27 percent from a year earlier.

In the meantime, unionized Renault Samsung workers applied for a court injunction last month, claiming that the production volume adjustment, voluntary retirement and job relocation should be halted. They sued the company with regard to collective bargaining compliance as well.