A labor union has officially launched at Kolon Motors, the largest BMW dealer in Korea. The move comes as employees collectively began raising their voices, saying management has cut allowances for reasons such as pushing new businesses and strengthening profitability, and has been issuing various unreasonable work orders. Kolon Motors said it plans to communicate with the union in accordance with relevant laws and procedures.
According to the imported car industry on the 3rd, Kolon Motors employees recently established a union and notified the company that they had joined the Korea Metal Workers' Union Imported Automobile Chapter. The number of union members was not disclosed. The total number of employees is around 1,300, and membership is said to be in the triple digits.
Kolon Motors is the largest BMW dealer in Korea. In Sep. 2023, when Lee Gyu-ho, vice chairman of Kolon Group and the eldest son of honorary chairman Lee Woong-yeol, was CEO of Kolon Mobility Group, the BMW headquarters was spun off as a separate corporation through a physical partitioning.
Kolon Motors sells BMW and Mini (MINI) automobiles and Motorrad, the motorcycle line, among BMW Group products. At the same time, it is also running a used-car business linked to BMW new-car sales.
Kolon Motors employees began organizing a union in Apr. this year. The trigger is known to have been conflicts with employees that arose as Kolon Mobility Group selected the used-car business as a new venture and pushed it forward.
The new used-car business has been led by CEO Choi Hyun-seok, who joined the group in Sep. 2023. Choi is a used-car specialist who worked at SK Encar and K Car.
A union official said, "Management unjustly dismissed some existing employees at certain used-car stores and filled the positions with close associates of CEO Choi," and added, "They also pressured employees to agree to a change in the system that would cut existing incentives."
The union also claims that dissatisfaction is high among employees in the new-car division. A union official said, "Management is forcing each sales representative to give up their allowances in exchange for supporting promotion expenses." In response to these union claims, Kolon Motors said, "We have heard nothing of the sort."
The Kolon Motors union has applied to negotiate with management and is awaiting the public notice of the negotiation request, which signifies management's acceptance of the request. The union plans to deliver its demands on various pending issues, including the reduction of incentives, to management.
A union official said, "We will resolve this as much as possible through dialogue with management," adding, "However, if the company suppresses the union or ignores legitimate and reasonable demands, we will take action." Kolon Motors said, "We plan to communicate (with the union) while adhering to procedures and principles under relevant laws."