Kumho Tires, Union Reach Agreement

An agreement between management at Kumho Tires and the union representing employees has finally been reached. The Korea Times states that on April 18, during the 26th round of negotiations, both parties found common ground on all major issues. As per the terms of this final agreement, the decision to lay-off 189 Kumho Tires workers has been revoked on the condition that employees submit written assurances regarding the adherence to company regulations. The Korea Times adds that a further plan to outsource 1,006 employees will be cancelled should the agreement gain worker approval when voted upon.

With this agreement, the likelihood that Kumho Tires can avoid receivership has greatly increased, and will instead be placed under  a debt restructuring programme. According to the Korea times, an emergency injection of cash will be available from creditors if the agreement is finalised, which will help cover five months of overdue payments to company employees and also lead to the resumption of full operation of its plants.

“A consensus between management and the labour union that the current process should be maintained led to the final agreement in the end,” the company said in a statement. “We hope that similar sentiment will be reflected in the upcoming vote too.” Workers belonging to the labour union will vote on the agreement on April 21.