Kumho, union reach agreement in South Korea
A final agreement has been reached between Kumho Tire Co. and its unionized workers in South Korea.
When the final details of the agreement are ironed out, the final agreement will be presented to the Board of Creditors.
Because the union voted to accept Kumho’s proposal, there will not be another strike (see "Kumho Tire strike ends after one day").
“The agreement brings forth renewed energy for Kumho Tire U.S.A. and starts us on the road to improvements in efficiency and overall competitiveness,” says J.B. Kim, CEO and president of Kumho Tire U.S.A Inc.
The resolution between Kumho and the Korean union "will bring forth the infusion of $100 million in immediate funds to the company, and begins the process of the creditors supplying more than $450 million of fresh loans as part of the debt restructuring 'workout' program," according to Kumho Tire.