Hyundai Heavy Union to Stage Partial Strike on 20th... Company Says "Management Plan Must Be Reconsidered Due to COVID-19"

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] The Hyundai Heavy Industries labor union has decided to go on strike to conclude the deadlocked wage negotiations.

The Hyundai Heavy Industries union announced that it will hold a '2019 Wage Negotiation Victory Rally' and begin a strike for two hours starting at 3 p.m. on the 20th. On the 19th, a day prior, they will also hold a motorcycle protest during lunchtime.

Since the initial wage negotiation meeting on May 2 last year, Hyundai Heavy Industries management and the union have held 46 rounds of talks until the 12th of this month but have failed to narrow their differences.

In particular, wage negotiations have been stagnant since last May when conflicts arose over the company's corporate split (physical division).

During the union's opposition to the corporate split, they blocked and damaged the shareholders' meeting venue and conducted strikes, while the company responded by disciplining union members with dismissals and pay cuts, escalating the conflict.

The union insists that resolving the issue of dismissed workers is necessary to accelerate wage negotiations. However, the company has stated that it cannot overlook illegal acts, indicating that negotiations are likely to be prolonged.

The company has also recently proposed to the union to prioritize paying last year's performance bonuses to union members, considering their household situations and the global economic impact of the novel coronavirus (COVID-19) pandemic, and to promptly conclude the wage negotiations. However, the union rejected the proposal, claiming that their suggestions were not reflected in the criteria for calculating the performance bonuses.

A Hyundai Heavy Industries official explained, "Unlike the automobile industry, shipbuilding is not a line process, so even if there is a strike, the production process does not stop," adding, "Due to the sharp decline in ship orders caused by COVID-19, a comprehensive review of the management plan is inevitable."

This content was produced with the assistance of AI translation services.