Nexen Tire has established itself as a model case of Korean labor-management culture by simultaneously boosting productivity and global competitiveness based on 34 consecutive years of dispute-free labor relations.
Nexen Tire announced Wednesday that it received the Presidential Award, the highest honor at the 2025 Labor-Management Culture Awards hosted by the Ministry of Employment and Labor. The Labor-Management Culture Awards is Korea's most prestigious recognition given to companies that have established a culture of mutual growth and cooperation between labor and management while achieving both corporate competitiveness and employment stability. Recipients are selected through rigorous on-site evaluations and case presentations from companies certified as excellent in labor-management culture over the past three years.
Nexen Tire received high marks for maintaining stable business operations amid internal and external uncertainties through a cooperative structure that views labor and management as "business partners" rather than "opposing parties." Even as the global business environment underwent rapid changes due to the COVID-19 pandemic and the Russia-Ukraine war, labor and management minimized production disruptions through flexible factory operations and wage negotiations that considered business conditions. This translated into maintaining trust in global supply chains.
This labor-management stability produced tangible economic benefits through improved cost structures and enhanced productivity. Without production stoppages or additional costs from labor disputes, the company was able to concentrate management resources on research and development and facility investment. This is credited with strengthening both price competitiveness and quality competitiveness in global markets. Thirty-four consecutive years without labor disputes is a rare achievement even among Korean manufacturers.
Transparent information sharing and a continuous communication system are also cited as factors that improved management efficiency. Nexen Tire shares company performance and business strategies through regular management briefings and has preemptively resolved potential workplace conflicts through a standing working-level negotiation system. Issues outside formal negotiations are promptly coordinated through a labor-management council, establishing a healthy bargaining culture.
Shop floor-centered innovation activities are also notable. Production process improvements and quality enhancement ideas from an internal suggestion system and small group activities have been reflected in management, raising operational efficiency and leading to cost reductions and productivity gains. Additionally, the introduction of flexible work arrangements including staggered commuting hours and regular employee satisfaction surveys have reduced turnover and encouraged long-term retention of skilled workers.
"This Presidential Award is recognition of decades of effort built on the philosophy that labor and management share the same roots, trusting and cooperating with each other," a Nexen Tire official said. "We plan to continue strengthening our global competitiveness based on a sound labor-management culture while realizing the values of talent development and respect for labor."
