Kia labor and management agreed on the 24th to include holiday subsidies and summer vacation pay in ordinary wages. This discussion is separate from the ongoing wage talks.
Ordinary wages serve as the basis for calculating various allowances and severance pay. According to the union, up to 17.4 million won per person will be additionally reflected as ordinary wages. As a result, Kia's labor costs are expected to rise.
Specifically, Lunar New Year and Chuseok holiday subsidies (1.1 million won each), summer vacation pay (800,000 won), and engineer/technical job allowances (28 types) will be treated as ordinary wages.
It is also known that labor and management included a provision to retroactively apply this agreement from when the Supreme Court expanded the scope of ordinary wages last year. Earlier, on Dec. 19 last year, the Supreme Court held that conditional regular bonuses paid based on employment status or a requirement to work more than a certain number of days must be included in ordinary wages.
Meanwhile, Hyundai Motor labor and management in the same group also agreed on the 16th to include holiday support payments, summer vacation pay, and research efficiency improvement allowances in ordinary wages.