[Exclusive] Hyundai Wia Ends 7-Year Legal Battle Over Ordinary Wages... Pays Average of 20.99 Million Won

[Asia Economy Reporter Ki-min Lee] Following Hyundai Kia Motors, Hyundai Wia's labor and management have reached a final agreement to pay the unpaid "bonus ordinary wages," putting an end to a seven-year legal dispute.

According to the industry on the 17th, Hyundai Wia and the Hyundai Wia branch of the Korean Metal Workers' Union tentatively agreed on the "joint labor-management proposal related to ordinary wage lawsuits" on the 13th, and then approved it with a 54.02% approval rate in a vote among union members on the morning of the same day. The agreement applies to a total of 1,530 workers at Hyundai Wia who filed lawsuits requesting that bonuses be recognized as ordinary wages.

Previously, workers of Hyundai Wia and the former Hyundai Metia and Wisco, which merged with Hyundai Wia at the end of 2014, filed the first lawsuits in 2013 and 2014, respectively, requesting that bonuses paid from July 2010 to October 2014 be recognized as ordinary wages. They won partially in the first trial, and the total amount of unpaid wages the company had to pay reached 105.4 billion KRW. After the first lawsuit, the workers filed a second lawsuit in 2016, arguing that bonuses paid until December 2016 should also be applied as ordinary wages. The joint labor-management committee agreed that since the first trial of the second lawsuit was still ongoing and the amount was not specified, the company would pay 31.3% of the total unpaid amount based on the first lawsuit's judgment, amounting to 31.9 billion KRW, to the workers.

According to the agreement obtained by this outlet, the Hyundai Wia joint labor-management committee agreed to pay an average of 20.99 million KRW per person to those who submitted a non-prosecution agreement stating they would withdraw the bonus ordinary wage-related lawsuits and not file related lawsuits. Specifically, Hyundai Wia will pay workers who filed lawsuits a fixed amount consisting of an average of 12.99 million KRW per person, calculated as 31.3% of the first trial judgment amount, plus 8 million KRW as a settlement.

For those who have already retired, in addition to 12.99 million KRW per person, a settlement amount ranging from 1 million to 8 million KRW will be paid differentially according to the retirement year. However, those who joined after the first lawsuit period will receive 4 million KRW as an encouragement payment. Additionally, the company will support 300,000 KRW per person for litigation-related expenses such as court fees.

The union reportedly held general meetings with members on the previous day and the day of the vote, engaging in heated debates over whether to accept the agreement. Some members expressed that the agreement did not meet the level of the Hyundai Kia Motors labor-management agreement. Previously, following Kia Motors, a key affiliate of Hyundai Motor Group, Hyundai Motor Company completed negotiations on ordinary wages with labor and management and paid the unpaid amounts. Kia Motors paid about 19 million KRW per person, including 60% of the unpaid wages based on the second trial judgment and an agreed amount of 8 million KRW, in March last year. Hyundai Motor Company's labor and management reached an agreement last September to pay 6 million KRW per person and 15 shares of Hyundai Motor stock, totaling 7.875 million KRW, for unpaid ordinary wages.

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