Hankook Tire & Technology Co. is the world’s sixth-largest tire manufacturer by sales. The company announced that it has resumed operations at two of its plants in South Korea after a strike that started over a wage deal.
On Friday, a deal was reached that includes a 6% increase in basic monthly pay. US$4,200 (5 million won) was allocated as performance-based pay with a bonus of 2 million won per worker. This helped end the strike that began on Nov. 24. It was the first strike since the company founded a labor union in 1962.
Both plants have a combined production capacity of 100,000 units per day. The company wishes to normalize production at both locations. The profit between January and September doubled from 235.2 billion won to 525.4 billion won.
More than 80 percent of Hankook’s revenue is earned from abroad. There are eight plants in total two in South Korea, one in the United States, one in Hungary, one in Indonesia, and three in China. The combined capacity reaches 102 million Hankook tires every year.