Kumho Tire Workers Reject Pay Cut Agreement
On April 1 a nine-hour strike held by Kumho Tire workers was called off following a tentative agreement reached between union leaders and Kumho management. This agreement outlined a ten per cent wage reduction for employees at the financially burdened company, plus an additional five per cent pay cut during the time in which Kumho Tire is undergoing a debt rescheduling programme. However the Yonhap News Agency reported on April 9 that this tentative agreement has been rejected by employees.
At the end of last year Kumho Asiana agreed with its main creditor, Korea Development, to place its Kumho Industrial and Kumho units under a debt rescheduling program to help ease a cash shortage sparked by the group’s delayed sale of Daewoo Engineering & Construction Co. According to Yonhap, industry sources say the creditors may place Kumho Tire under court receivership.