Hyundai Kia Motors Labor and Management Enter 'Hatu' Phase... Accelerated Negotiations for Wage and Collective Bargaining Agreement

[Asia Economy Reporter Suyeon Woo] Hyundai Motor Company's labor and management have officially begun negotiations for this year's wage and collective bargaining agreement (CBA), accelerating the pace of talks. Since the schedule was delayed due to the novel coronavirus disease (COVID-19), both labor and management plan to quickly narrow their differences with the goal of reaching an agreement before Chuseok this year.

According to the automotive industry on the 22nd, Hyundai Motor's labor and management started with a preliminary meeting on the 13th, followed by main negotiations held over two days on the 19th and 20th. During the initial meeting, both sides explained their positions regarding the CBA negotiations, and in the two subsequent main negotiation sessions, management presentations were given on the global automotive industry outlook, production and sales performance, and the company's first-half management results for this year.

Hyundai Motor's management side holds the position that, due to the uncertainty caused by COVID-19, it is impossible to guarantee how it will affect business performance, so they advocate for a clear recognition of the current situation the company faces. On the other hand, the labor side argues that as the importance of domestic factories has increased and their contribution to performance has grown due to COVID-19, they deserve appropriate treatment accordingly.

However, since both sides expect to reach an agreement before Chuseok, there is also optimism that differences will be narrowed faster than last year. A Hyundai Motor union official said, "By concluding negotiations with a sense of urgency and focusing on production, Hyundai Motor's competitiveness can also be enhanced."

Meanwhile, Kia Motors, which has a stronger union than Hyundai Motor, is expected to start this year's CBA negotiations a bit later than Hyundai. Kia's labor and management will begin the main negotiations, including a preliminary meeting and management briefing, on the 27th, and on the 1st of next month, they will hold a wage demand explanation session, followed by further main negotiations on the 3rd.

There is growing interest from labor and industry regarding how the Supreme Court's ruling on the 20th, which ultimately sided with the workers in Kia's ordinary wage lawsuit, will be reflected in this year's CBA negotiations. Kia's union included in this year's CBA demands a request to expand the concept of ordinary wages to cover basic salary, bonuses, and ordinary allowances.

This is because, although last year's second trial court ruling ordered that bonuses be included in ordinary wages, the specific content has not yet been incorporated into the collective agreement. Kia's union plans to include this content in this year's collective agreement and review the overall ordinary wage system.

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