Kia To Cough Up $373 Million In Unpaid Wages

Kia has been ordered to pay roughly 420 billion won ($373 million)

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by Brad Anderson

August 31, 2017 at 17:51

Kia has been ordered to pay roughly 420 billion won ($373 million) in unpaid wages following a long-running pay dispute with workers.

The pay dispute first started in 2011 when workers alleged that the South Korean automaker had underpaid them by 659 billion won, a figure that now equates to over 1 trillion won ($888 million) with interest.

In the claim, workers asserted that regular bonuses should be included as part of a base pay that determines compensation for unused annual leave, overtime, severance pay and all other payments. The workers asked the judge at Seoul Central District Court for 1 trillion won.

During court proceedings, Reuters reports that Kia claimed it would be “inappropriate” for the country’s economy if it were ordered to cough up unpaid wages. The judge disagreed.

Kia has suggested that it may appeal the decision.