From Strikes to System Changes... The Auto Industry Plagued by Union Risks

[Asia Economy Reporter Sung Kiho] The sales and marketing irregular workers' union of Hyundai and Kia Motors has secured the right to strike and declared a strike. Although the level of the strike is still under discussion, if they simultaneously refuse to sell, damage to Hyundai and Kia Motors appears inevitable. Previously, following the strike resolution by the Korea GM union, the leadership of the Renault Samsung Motors union is pushing for membership in the Korean Confederation of Trade Unions (KCTU), indicating that union risks in the automotive industry are expected to continue for the time being.

On the 6th, Kim Sunyoung, head of the Metal Workers' Union Automotive Sales Solidarity Branch, stated, "The strike of irregular automotive sales workers has been decided," adding, "We will decide on specific implementation methods by next week and proceed with the strike." So far, union members who have declared participation in the strike amount to about 570 people across 100 dealerships. The Sales Solidarity has received a 'mediation suspension' decision at the regional labor commission adjustment meetings in Seoul, Gyeonggi, Incheon, Ulsan, Gyeongnam, Jeonnam, Chungnam, Chungbuk, and Jeju. Earlier, in the strike action approval vote held from the 26th to the 28th of last month, 98% of union members voted, with 97.8% approving the strike.

The strike will take the form of a sales refusal. However, specific matters such as attendance, absence, and strike duration will be decided after internal discussions. Additionally, union members in regions other than those mentioned are awaiting decisions from their regional labor commission adjustment meetings, so the scale of the strike may increase.

The Renault Samsung Motors union will hold a general union meeting on the 9th and 10th to discuss joining the KCTU. Ahead of this, although a breakdown in wage and collective bargaining negotiations and the possibility of a strike were anticipated, the union stated it will engage sincerely in negotiations. Ju Jaejung, senior vice chairman of the Renault Samsung Motors union, said, "Currently, the management is not sincerely participating in negotiations, and the union has raised several issues," adding, "However, we are not yet considering a breakdown in negotiations and will participate sincerely."

Within the industry, it is believed that whether the union joins the KCTU will bring greater change than a breakdown in wage and collective bargaining negotiations. An industry insider said, "If the Renault Samsung Motors union joins the KCTU, the right to negotiate wage and collective agreements will transfer to the higher organization, the KCTU, so the ongoing negotiations will naturally break down," adding, "The union's joining of the KCTU will cause a bigger impact than declaring a breakdown in negotiations."

Due to the high volatility of the issue, the Renault Samsung Motors union leadership is reportedly focusing all efforts on the system transition. For the Renault Samsung union to join the KCTU, a two-thirds (66.7%) approval from a majority of all union members attending is required. Furthermore, with the union leadership election scheduled for November, this is effectively a vote of confidence in the current leadership. The Renault Samsung union leadership also attempted to join the Metal Workers' Union of the KCTU in March this year but abandoned the effort midway due to opposition from the majority of delegates.

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