Considering Significant Effect: Court Deferred Ruling Concerning Ordinary Wage Lawsuit | BusinessKorea

Friday, October 20, 2017

The Korea Employers Federation pointed out that,employers have to bear a one-off cost of no less than 38 trillion won (US$34 billion) and the number of jobs can be reduced by approximately 410,000, if regular bonuses are included in ordinary wages.
The Korea Employers Federation pointed out that,employers have to bear a one-off cost of no less than 38 trillion won (US$34 billion) and the number of jobs can be reduced by approximately 410,000, if regular bonuses are included in ordinary wages.
SEOUL,KOREA
10 August 2017 - 12:30pm
Jung Min-hee

The Seoul Central District Court deferred the ruling of the first trial regarding the ordinary wage lawsuit filed by Kia Motors union members for more opinions to be heard from both sides. A new date for the ruling is determined on August 17, which was the date of the first ruling.

According to industry insiders, the deferment is because the ruling is likely to have a significant impact on various industries as well as the automobile industry as a whole. Depending on the result of the first trial, Kia Motors has to pay three trillion won to five trillion won in a lump sum and then the company may fall into the red in the third quarter of this year. In addition, the result of the first trial is likely to affect 5,300 or so companies in the automobile industry as well as the entire Hyundai Motor Group.

The litigation is highly symbolic in size and magnitude and is expected to affect hundreds of similar lawsuits in many other companies. In 2013, the Korea Employers Federation pointed out that, if regular bonuses are included in ordinary wages, employers have to bear a one-off cost of no less than 38 trillion won and the number of jobs can be reduced by approximately 410,000.

In the meantime, Kia Motors union members made no decision on August 8 on their strike schedule. They are planning to make determinations on August 21 after checking the result of the first trial on August 17. 

 

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