South Korea’s second-largest tyre maker, Kumho Tire closes down its plants last Sunday because of the ongoing strike.
Kumho shuts down its plants in Gwangju, Gokseong, South Jeolla Province and Pyeongtaek, Gyeonggi Province to secure the facilities from the union members.
“We closed the workplaces because we cannot sustain long-term strikes by the labor union. We also aim to protect the company’s facilities,” said the company in a statement.
The union members started an all-out strike last August 17 because of an issue in the wage system. The management and the union disagreed in a new pay system, allowing workers to delay retirement in exchange of a salary cap.
“As the union’s all-out strike continues, we decided to close the office,” said an unnamed Kumho official to the Korean Herald. “If the union expresses its will to stop the strike, we will reopen the office.”
The tyre company reportedly lost 89bn won (US$75mn) because of the strike and the average loss for each employee is expected to be over 2.5mn won.