Renault on April 29 temporarily halted operations at its only plant in South Korea amid a drawn-out dispute with its labor union over wages and working hours.
Renault Samsung Motors, the Korean unit of the French carmaker, plans to suspend the operation of the Busan plant, 450 kilometers south of Seoul, the company said in a statement.
The plant suspension comes as Renault Samsung and its union haven’t reached any agreement over wages and other matters for the past six months. The union staged 62 rounds of strikes from October through April 19, resulting in production losses of over 14,320 vehicles.
“The plant will resume operations later this week,” a company spokesman said. The company and the union will meet to set the date for talks, he said.
The company wants to maintain a certain output level at the plant by securing export models from its parent company. But the union is more focused on increasing wages and reducing labor intensity.
In particular, the company sticks to its plans to outsource the manufacturing of vehicles, if needed, and relocate assembly line workers against their will. The union is strongly opposed to the idea.
By Ram Garikipati and newswires (firstname.lastname@example.org)