Kia Motors Korea Shifts Jobs to Accommodate for Poor Domestic Sales
Kia Motors Corp. in South Korea has reached an agreement with its labor union to transfer some sales staff to other positions such as production or administration, the company.
Officials from Korea's No. 2 carmaker said the agreement is designed to tackle the nation's faltering domestic auto sales. Due to the weak Korean economy, Kia's domestic sales slid 20.4 percent year-on-year to 232,074 units from January to November.
Kia officials declined to elaborate on how many workers they want to move from the sales operation. The company has about 3,000 sales staff nationwide.
The Kia union initially opposed the transfers, saying the company could use the plan to begin mass layoffs. Employees only endorsed the plan after the company promised job security for the shifted employees.
Other Korean carmakers such as Hyundai Motor Co. and GM Daewoo Auto & Technology Co. said they have no plans for similar job transfers.
The Big 3 carmakers in Korea - Hyundai, Kia and GM Daewoo - have relied on strong exports to offset losses from the domestic sales. These companies generate more than 70 percent of their revenue from sales abroad.
Kia's exports from January to November rose 41.9 percent year-on-year to 667,469 units, mainly due to the popularity of the Sorento sport utility vehicle and Sedona minivan in the U.S. market.
Officials from Korea's No. 2 carmaker said the agreement is designed to tackle the nation's faltering domestic auto sales. Due to the weak Korean economy, Kia's domestic sales slid 20.4 percent year-on-year to 232,074 units from January to November.
Kia officials declined to elaborate on how many workers they want to move from the sales operation. The company has about 3,000 sales staff nationwide.
The Kia union initially opposed the transfers, saying the company could use the plan to begin mass layoffs. Employees only endorsed the plan after the company promised job security for the shifted employees.
Other Korean carmakers such as Hyundai Motor Co. and GM Daewoo Auto & Technology Co. said they have no plans for similar job transfers.
The Big 3 carmakers in Korea - Hyundai, Kia and GM Daewoo - have relied on strong exports to offset losses from the domestic sales. These companies generate more than 70 percent of their revenue from sales abroad.
Kia's exports from January to November rose 41.9 percent year-on-year to 667,469 units, mainly due to the popularity of the Sorento sport utility vehicle and Sedona minivan in the U.S. market.
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