Filed under: Trends, Earnings/Financials
Burned Rubber: Kumho delays holiday bonuses indefinitely
Rubber factory workers in South Korea haven't had a very happy holiday season this year, and they can blame it on the negative traits of the trickle-down effect.
Because Hyundai/Kia has been hit as hard as any other automaker in this economic crisis, business has been down for the country's second-largest tire maker, Kumho, as well. Due to the resulting dearth in liquidity, Kumho Tire Co. has just announced that it is unable to pay its workers their annual bonus. At 2.5 million won ($1,883) per worker and 3000 workers waiting for their cash, that's a lot of money, and Kumho says they don't have it... and don't know when they will.
Looks like it's tire-swings all around for Junior next Christmas, too...
[Source: TradingMarkets.com]
Reader Comments (Page 1 of 1)
Triton46 3:06PM (1/05/2009)
It's a one year membership....in the jelly of the month club....
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skeptic 3:41PM (1/05/2009)
I WISH that i got a jelly of the month club membership. Instead i lost the last weeks pay, had my vacation and sick time frozen and received a 26% paycut.
Oh, and they no longer cover my family healthcare benefits....or my 401k match...
But...I do still have a job....for now.
Greg 3:10PM (1/05/2009)
Well hopefully for them, people will start switching from more expensive brands to them to save some cash for their own downturn recovery. I've been just as happy with their Ecsta SPT tire as I have been with Pirelli tires for street use.
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Brn 3:17PM (1/05/2009)
"unable to pay its workers their annual bonus."
Bonuses shouldn't be expected. Times are tough. You don't get a bonus. You're better off than most.
This is news?
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Jeff Johnson 3:17PM (1/05/2009)
The word "bonus" denotes something extra, that is not expected. If the workers were promised a bonus and then never delivered... I can understand some animosity there, however everyone that has a job is fully aware of the economic down turn we have had. Do people really expect to be given out bonuses when companies are going under all around us?
A bonus is something given out when possible - in these economic conditions, don't get your panties in a wad if it doenst happen.
The sense of "entitlement" in this country is partly why we are so messed up right now.
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The Luigiian 3:43PM (1/05/2009)
Yes, but these workers were in Korea, not the United States...
Big Rocket 3:49PM (1/05/2009)
@Jeff Johnson: The sense of entitlement in which country are you talking about? Kumho, and the workers not getting the bonuses, are in South Korea.
albert 5:11PM (1/05/2009)
Actually, in Asian countries like Korea and Taiwan, year-end bonuses are mostly considered part of the the basic salary. It's almost de facto that you'd get a extra "bonus" equivalent of 1 month's pay at the end of the year regardless how the companies are doing. The "Real" bonus starts on top of that 1 month's extra pay. So basically the Kumho workers are actually getting a pay cut of 1/13.
Bob-omb 3:20PM (1/05/2009)
This is kind of...not newsworthy.
But it gives me an excuse to talk about how much I love Kumho's tires. Their standard all-season Solus KR21's are unbeatable for the price.
http://www.tirerack.com/tires/surveyresults/surveydisplay.jsp?type=ST
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Jeff Johnson 3:23PM (1/05/2009)
More and more I see people bitching how things posted are not "newsworthy".
I do like autoblog - however some of their postings don't get me excited, but it's a BLOG. The people who run this site put up anything they think is interesting and people want to read about.
If people want the "5-star" news articles, fork over some money and subscribe to the new york times or something like that.
Not trying to be hateful - but just realize what the site is, a web log of things going on that they are interested in.
Hypocritsy 3:31PM (1/05/2009)
Agreed, and I think the Noah Joseph is just bored...
IOMTT 3:33PM (1/05/2009)
@ Bob omb, +1. Kumho is my official tire for replacing the worn OEMs. In each case, the Kumho has been better overall than the OEM brand while being up to half the price. Now if they only could make motorcycle tires the same way!
Hypocritsy 3:26PM (1/05/2009)
Uh--Oh, Okay, So What About The Rest Of Tyre Makers? Do Their Workers Get "Holiday Bonunses"???? Hmmm?
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Benfolio 3:36PM (1/05/2009)
I've been trying to help. I've been ordering about $1500 in Kumho tires a week since October.
Those KR21's (pictured) are an easy sell. 85,000 mile warranty, roadside assistance, AND roadhazard coverage.
And inexpensive too!
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Gardiner Westbound 3:41PM (1/05/2009)
Koreans don't take any sh*t. They're the world's best rioters. They may still get their bonuses.
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Hypocritsy 3:49PM (1/05/2009)
What R U Smoking??? Did You Mean "Chinese Rioters" in Seoul? Hmm? Lol.... Everyone Knows The Chinese Are Trouble-Makers Everywhere You Go...
http://www.youtube.com/watch?v=Jv-K2zRf3ns (Chinese Rioters In S. Korea)
Iridium 4:48PM (1/05/2009)
Kumho makes a great tire. I was going to order a set of Ecstas for my Lancer but I went with a set of GoodYear Eagle F1s because Tire Rack had them on sale for $100 a piece. I'm worried about treadlife though since Goodyear likes to overstate treadlife by a large margin.
You really can't beat Kumhos for the price. The treadwear is close to the best, performance is close to the best, the warranty is the best, and the price is closest to being cheapest.
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jsjs 5:44PM (1/05/2009)
hypoc -
Korean union workers are known for striking and even rioting when things aren't satisfactory.
Anyhow, Kumho does make some pretty good tires (and for the price, almost hard to beat).
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Hypocritsy 6:59PM (1/05/2009)
jsjs:
Most of those violent workers are of Chinese descent or Chinese (illegal) workers. THAT is why most average Koreans (and possibly Japanese) look down upon the "lowly/violent Chinese trouble-makers" who ruin societies and economies in Korea.
Fact: The Liberal Union/Chinese Workers in Korea (AKA. Min No Chong) Are Puppets/Infiltrators Of CCP(Communist Chinese Party)/NK(North Korea), And Their Objectives Are To Make Free-Societies Like S. Korea, Japan and the US "unstable/collapse".
Hope This Helps.
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the vegas style guy 3:04AM (1/06/2009)
Uh yeah, it helps. I can't put my finger on it but I think you just managed to slur two racial groups all the while hiding behind some obscure statistics.
"Look mommy! A racist with a Lap Top!"
Wait, you can't have a Lap Top. You couldn't finish yourself off while looking at Anime porn.
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