Renault Samsung Workers Form Labor Union

Renault Samsung, which has not had an organized labor union since it was formed in 2000, now has a 200-member union core in place.

The new union is recruiting members at the auto maker’s plant in Busan. It also says it has joined the Korean Metal Workers Union, the umbrella group that represents union workers at all other Korean auto makers.

The union says about 4,000 of RSM’s 5,650 employees have production-related jobs.

When the auto maker was acquired from Samsung in 2000, it had slightly less than 2,000 employees. With no union in place, RSM has been dealing with representative committees of employees who discuss worker needs.

The committees have focused on social issues, but have not been aggressive in seeking wage increases. RSM has provided wage and benefit improvements every year since its founding.

Analysts say the auto maker now will face the same formidable union demands that confront Korea’s other auto makers each year.

The KMWU sets uniform wage goals for all workers under its collective umbrella.

Worker demands made this year at Hyundai, Kia, GM Korea and Ssangyong called for identical wage raises and bonus payments.

Union members at GM Korea, Ssangyong and Kia have ratified new labor agreements. Negotiations continue at Hyundai.

RSM spokesmen will not comment on the union activity at the auto maker. Renault owns 80% of RSM shares, with Samsung subsidiaries holding the rest.