Kia Union Demands $2 Billion Bonus as Samsung Strikes Tentative Deal

Translation resultKia Union Ramps Up Wage Pressure, Cites Samsung’s Bonus DealKia’s union (000270) intensified pressure on management on the 21st, citing Samsung Electronics’ tentative agreement on performance bonuses and urging the company to “learn from Samsung’s resolve,” the union said in an internal newsletter distributed that day.The union noted that Samsung reached a no‑strike wage agreement and will pay a special performance bonus equal to 12% of business results. By contrast, Kia’s union has continued its campaign for a special bonus while the company has consistently ignored those demands, the union said.“The difference between Samsung and Kia is clear,” the union said, arguing it comes down to “the ideology and resolve of management.” “Workers on the production floor are the primary beneficiaries of company profits,” the union added, saying “production should be run with workers at the center.”The Kia union is demanding that the company pay 30% of last year’s operating profit as performance bonuses. Last year, Kia reported operating profit of KRW 9,078,100,000,000 (about $6.81 billion). If the union’s demand were met, Kia would pay roughly KRW 2,720,000,000,000 (about $2.04 billion) in bonuses — a sum that exceeds Kia’s operating profit in the first quarter of this year, KRW 2,205,100,000,000 (about $1.65 billion).