January 22, 2021 13:37
Renault Samsung has started taking applications for voluntary redundancy amid dire prospects for its continuing operations in Korea.
A total of 4,200 workers who have worked for the carmaker for more than two years are eligible to apply.
"We expect to have posted the first operating loss in eight years after production and sales fell to the lowest levels in 16 years last year," Renault Samsung said. "We are going into emergency mode to cut costs."
Earlier this month Renault Samsung decided to let go 40 percent of its 50 executives while the remaining ones agreed to a 20-percent pay cut. The company's union in a statement said, "Top management staff are responsible for this crisis and they need to leave. Do not pass the blame on to frontline union workers."
Renault Samsung has almost nothing to do at the moment after the parent company stopped producing the Nissan Rogue here last year over dwindling demand and constant battles with the union.
Lee Hang-gu at the Korea Automotive Technology Institute said, "The Renault group is restructuring its operations centering on Europe and China. If the Korean plant can't boost profitability, it could end up having to close."
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