Renault Korea, union reach wage deal after labour strike

The management and union of Renault Korea Motors, the South Korean unit of Renault, has sealed a wage deal after an extended labour strike over wages and working conditions.

Unionised workers of Renault Korea engaged in a full-scale strike since September 13, demanding improved wages and working conditions.

According to the company the labour union held a vote on whether to accept a tentative wage and collective bargaining agreement, with 50.5% of the members voting in favour, reports Yonhap news agency.

The package includes an 80,000 won (USD 59) increase in base salary and a 3 million-won performance incentive for the successful launch of the company's mid-sized SUV Grand Koleos, among others.

Following the wage deal, Renault Korea said it is now able to focus more on the success of the Grand Koleos, which has been well-received in the market, as well as on advancement of future projects.

The Grand Koleos made an impressive sales debut by selling 3,900 units in its first month.

The model, which was first unveiled at the Busan International Mobility Show in May, accounted for most of the company's total sales of 4,980 units in September.

Meanwhile, Renault Korea Motors' sales declined 5.3% last month from a year earlier on decreased exports.

Renault Korea sold 8,625 vehicles in September, down from 9,105 units a year earlier due to sluggish overseas demand, the company said in a statement. Domestic sales more than tripled to 5,010 units from 1,651 during the same period, while exports plunged 52% on-year to 3,615 units from 7,454, it said.

"Strong sales of the new midsized Grand Koleos SUV buoyed the domestic sales last month," the company said.

From January to September, its sales fell 26 percent to 64,656 autos from 87,201 units in the same period last year.

Domestic sales climbed 11% to 19,042 units in the first nine months from 17,128, while exports dropped 35% to 45,614 from 70,073 during the same period.