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Kia to Trim Domestic Production on Monday
Kia Motors Corp. says it will eliminate overtime work at its three South Korean assembly plants on Sept. 25 because of lagging sales worldwide.
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Kia Motors Corp. says it will eliminate overtime work at its three South Korean assembly plants on Sept. 25 because of lagging sales worldwide.
The workers have been adding 30 minutes to their work day. But Kia says a 53% drop in sales in China through the first eight months of 2017 makes the extra output unnecessary. The company eliminated weekend shifts earlier this month.
Another reason for the cutbacks: a Korean court ruling in August that said companies must considered fixed bonuses and meal allotment as part of base wages. Doing so will raise overtime rates, severance payment and other costs.
The court has ordered Kia to pay its workers 422 billion won ($373 million) in additional compensation. The ruling is a result of a lawsuit filed by workers in 2011.
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