The Kia Motors factory in Seo-gu, Gwangju, where production was stopped due to labor disputes with partner companies on the 17th, is empty. Freelancer Jeongpil Jang
Due to labor disputes of partner companies… Production loss’snowball’
The cumulative production loss at the Kia Motors plant in Gwangju, where production was stopped due to the suspension of parts supply by partner companies, is rising like a snowball. In order for the production line to operate normally, labor disputes between suppliers must be completed, but a large-scale rally on the weekend has been announced, raising concerns about production disruptions.
Over 250 suppliers also suffered production disruption
According to the Kia Motors plant in Gwangju on the 19th, the loss of vehicle production that was stopped due to labor disputes of partner’Howon’, which began on the 16th, was about 7,000. The Howon union has been occupying its own factory since the 16th for reasons such as withdrawal of unfair dismissal by the management and guarantee of union activities.
Howon, the primary supplier of body parts to the Kia Motors plant in Gwangju, has stopped producing and exporting parts for the fourth day due to labor disputes. The finished car factory does not store large quantities of production parts inside the factory and is a straight-line production method that continues to be supplied from partners, so if there are no parts, it cannot make a finished car.
The Kia Motors plant in Gwangju also ran out of stocks that were in stock on the day of the labor dispute with partner companies, and production stopped for the fourth day. The currently discontinued models are Seltos, Soul, Sportage, and Bongo trucks, with a daily production of about 2,000 units.
Production resumes only when labor disputes are resolved
On the 16th, the union members of’Howon’, a partner company of Kia Motors in Gwangju, started to take over the factory. Photo courtesy of the KCTU Gwangju Headquarters
Although the loss of vehicle production continues to increase, Kia Motors cannot receive parts from other companies. If you seek other parts suppliers, even temporarily, there may be problems with cooperation with existing subcontractors, and there is also a problem of technology leaks in the supplied parts.
Vehicle production can only resume when Howon’s labor disputes are resolved. As the production of finished cars at the Kia Motors plant has stopped, more than 250 related first- and third-tier suppliers are also suffering from disruption or shortening of operations.
The Kia Motors plant in Gwangju hopes that labor disputes will be ended as soon as possible, but labor and management Howon has not made progress in the ongoing negotiations. The issue of responsibility for the damages of Kia Motors and its partners arising from the labor dispute of this partner company may also arise.
Weekend Mass Rally Notice
On the 17th, a bus with a banner of a union protesting against the management stood near the factory in Gwangsan-gu, Gwangju. Howon is a partner at the Kia Motors plant in Gwangju, and production of Kia Motors stopped due to labor disputes. Freelancer Jeongpil Jang
In this situation, the KCTU and the metallurgical union, to which Howon’s union belonged, announced a large-scale rally on the 19th and 20th. At 4 pm on the 19th, 500 members of the metallurgical union and 500 members of the KCTU will attend the assembly near the Howon Factory in Gwangsan-gu on the 20th.
Police and quarantine authorities appear to be nervous about a large-scale rally. In Gwangju, the number of new coronavirus infections (Corona 19) in the region has been around 0-2 since the 9th.
A police official said, “We plan to strictly manage quarantine regulations and violations for this assembly in accordance with the Act on the Prevention and Management of Infectious Diseases.”
Gwangju Metropolitan City = Reporter Jin Changil [email protected]
