Kia Motors Loses Lawsuit Over Unpaid Wages

The Seoul Central District Court in South Korea has ruled against Kia Motors in a lawsuit regarding unpaid overtime wages and the definition of what is part of a worker’s salary. The court sided with Kia’s labor union that bonuses are included in “ordinary wages,” which are used to calculate overtime pay and other benefits of the job. Kia is appealing to the Korean Supreme Court and is setting aside money in the event that they are forced to recompense workers the difference in wages.   SEOUL In a decision with implications for the South Korean economy as a whole, the Seoul Central District Court ruled in favor of Kia Motors employees demanding what they claimed were unpaid wages. The court basically upheld the labor union's argument that bonuses are included in so-called ordinary wages, which are used as the basis for calculating overtime pay and other allowances. The Aug. 31 ruling could lead to higher labor costs for other companies operating in South Korea, both domestic and foreign, if they, too, are forced to alter their wage structures. The court ordered Kia to pay 422.3 billion won ($376 million) in unpaid wages. The company's labor union welcomed the ruling in a statement the same day, saying it "will help to improve the workers' lives." Click Here to Continue Reading

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