SEOUL, May 5 (Yonhap) – Unionized workers at Renault Samsung Motors Corp., the South Korean unit of Renault SA, said on Wednesday they would continue to leave unless management reconsidered its decision to shut down its operation. only factory here.
Renault Samsung on Tuesday closed its only factory in Busan, 450 kilometers south of Seoul, as the union, which has 1,900 members, extended its strike for the third consecutive working day.
The union and management organized nine rounds of wage negotiations, but failed to narrow their differences on wages and working conditions for the year 2020.
The strike came as the automaker struggled with declining sales.
From January to April, Renault Samsung sales fell 24% to 31,412 vehicles from 41,477 units in the same period last year mainly due to a lack of new models.
The strikes make it more difficult for the company to further secure the production volume of the XM3 SUV for export to Europe.
In January, Renault Samsung entered emergency management after reporting an operating loss of 70 billion won in 2019 for the first time in eight years. He announced his intention to reduce the number of executives by 40% and their salary by 20%. It also offered a voluntary retirement program to all employees.
Its current passenger car lineup includes the fully electric SM3 ZE sedan, SM6 sedan, XM3 SUV and QM6 SUV.