Hyundai Motor Labor and Management Enter Main Wage Negotiations... "Let's Negotiate to Meet Public Expectations"

Hyundai Motor Labor and Management to Hold First Main Wage Negotiation Session on the 19th Afternoon
Consensus Formed to Minimize Exhaustive Negotiations
Goal to Settle Before Chuseok... Expectation for Dispute-Free Agreement
Kia Motors Labor and Management to Hold Introductory Meeting on the 27th
Supreme Court Ruling Pending on First Ordinary Wage Lawsuit

[Asia Economy Reporter Su-yeon Woo] Hyundai Motor Company's labor and management began full-scale negotiations this year starting with the first official bargaining session on the 19th, following a preliminary meeting on wage and collective bargaining agreements (wage and collective bargaining, or 임단협) last week. Since both sides agreed during the preliminary meeting to minimize unproductive negotiations and conduct talks that meet the public's expectations, there is growing anticipation for a dispute-free settlement before Chuseok.

On the same day, Hyundai Motor's labor and management held the first official bargaining session of this year's wage and collective bargaining at the main building of the Ulsan plant. Given that this year's negotiation schedule was delayed by about three months due to the impact of the novel coronavirus disease (COVID-19), a swift negotiation process is expected. The Hyundai Motor labor union has set the keywords for this year's collective bargaining as 'survival' and 'future.'

At the earlier preliminary meeting, Hyundai Motor's management representative, President Ha Eon-tae, proposed, "Let's create negotiations that meet the public's expectations together." He emphasized, "We need to soberly assess the era we are living in," and expressed concerns about managerial uncertainties, saying, "No one can guarantee how the COVID-19 situation will unfold." President Ha also highlighted the recent difficult circumstances, noting that Hyundai Motor issued corporate bonds worth 600 billion KRW to prepare for liquidity crises caused by COVID-19 and canceled interim dividends.

In response, Lee Sang-soo, head of the Hyundai Motor labor union, said, "Since negotiations started late this year due to COVID-19, we will minimize unproductive wage negotiations," and added, "It is time to put an end to tedious logical disputes and outdated negotiation practices." He stated that overcoming the crisis and ensuring employment stability would be the top priorities in the negotiations and mentioned that the company should also show a changed attitude in line with the recent changes in the union.

Hyundai Motor's labor and management have set a goal to reach an agreement before Chuseok. The progress of negotiations by Hyundai Motor's union, considered the 'eldest brother' of the Metal Workers' Union, is expected to influence the direction of wage and collective bargaining agreements for Kia Motors and other Hyundai Motor Group affiliates.

The Kia Motors labor union, classified as a more hardline executive body than Hyundai Motor's union, plans to hold a preliminary meeting between labor and management on the 27th, about two weeks later than Hyundai Motor, and will hold a rally for all union members on the 29th. A variable factor is Kia Motors' upcoming Supreme Court final ruling on the first lawsuit regarding ordinary wages scheduled for the 20th. In 2011, Kia Motors workers filed a lawsuit requesting that regular bonuses, which reached up to 700% annually, and various allowances be included in the ordinary wage calculation.

In the first and second trials, the courts partially ruled in favor of the workers and concluded that Kia Motors must pay wages amounting to approximately 400 billion KRW. Last year, Kia Motors' labor union agreed on a payment plan for unpaid wages averaging about 19 million KRW per person and withdrew most lawsuits, but 3,531 workers did not withdraw their lawsuits and are awaiting the Supreme Court's ruling.

The Kia Motors labor union plans to proceed with negotiations at a relaxed pace while observing the results of the ordinary wage lawsuit and the negotiation trends between Hyundai Motor's labor and management. This year's wage and collective bargaining demands from the Kia Motors union include expanding the concept of ordinary wages to cover basic salary, bonuses, and ordinary allowances. A Kia Motors union official explained, "The current monthly bonuses and the collective agreement clause requiring payment every two months do not seem to align, so we are reviewing ways to supplement this," adding, "This means we intend to review the overall content of ordinary wages in connection with the Supreme Court's ruling on the 20th."

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