Hyundai Motor Chairman Chung Euisun Meets Union for the First Time Since Inauguration, Emphasizes "Importance of Stable Labor-Management Relations"

"In the Era of New Industries and Turbulence... Labor and Management Must Overcome Together"
Management and Labor Union Collaborate to Improve Production Quality and Employment Stability

[Asia Economy Reporter Woo Su-yeon] Since his inauguration, Chairman Chung Eui-sun met with the labor union branch chief for the first time to exchange opinions on a constructive labor-management relationship. This meeting is interpreted as Chairman Chung responding positively to recent changes in the Hyundai Motor labor union and jointly preparing measures for labor-management development.

According to Hyundai Motor and the Hyundai Motor Branch on the 3rd, Chairman Chung met with Lee Sang-soo, head of the Hyundai Motor Branch, over lunch at the Hyundai Motor Ulsan Plant Guesthouse on the 30th of last month. Hyundai Motor executives including Presidents Ha Eon-tae and Lee Won-hee, and Vice President Jang Jae-hoon were also present.

The lunch was reportedly held naturally right after the "Eco-friendly Future Car On-site Visit" event attended by President Moon Jae-in. Branch Chief Lee expressed gratitude to Chairman Chung and others for arranging the meeting, and the lunch proceeded for about an hour and a half in an informal atmosphere.

At the meeting, Chairman Chung said, "Stability in labor-management relations is of utmost importance," and added, "Let's find ways together so that employee satisfaction aligns with company development."

He continued, "In the era of new industries brought by electric vehicles, labor and management must navigate industrial upheaval together," emphasizing, "Let's unite to lead the change and try something new. As chairman, I will do my best. Participation on the ground is crucial."

Chairman Chung also stressed the importance of collective agreements between labor and management, mentioning employment stability by saying, "Labor and management must work together to prevent employment insecurity among union members."

In response, Branch Chief Lee said, "Labor and management cannot be separate when it comes to quality issues," and replied, "Let's work together." He also emphasized, "To revitalize the Ulsan economy, the source of Hyundai Motor's development, new businesses allocated to the 4th industrial revolution and mobility sectors must be heavily invested in Ulsan," adding, "While restructuring in the PT sector due to electric vehicles is inevitable, substitute industries needed for electric vehicles should be resolved within the Ulsan plant rather than through external production."

He further stated, "Union members must be able to work with pride in the company," and added, "This year, union members actively contributed to the company's development by overcoming COVID-19, and the company should respond accordingly in next year's negotiations."

On the 30th, Hyundai Motor Group Chairman Chung Euisun and other Hyundai Motor executives met with Lee Sang-su, head of the Hyundai Motor labor union, and had lunch together. From the left in the photo are Hyundai Motor President Gong Young-woon, President Albert Biermann, Union Head Lee Sang-su, Chairman Chung Euisun, President Ha Eon-tae, President Lee Won-hee, and Kia Motors President Song Ho-sung. Photo by Hyundai Motor

The meeting between Hyundai Motor executives and the labor union branch chief holds significance primarily because labor and management actively communicated for the company's future development. Hyundai Motor's labor union is making efforts together to shed its past image as a 'strong union' and build a new labor-management relationship.

Hyundai Motor labor and management also showed a progressive attitude in wage negotiations. In this year's wage negotiations, Hyundai Motor labor union froze wages for the first time in 11 years. The strikes that had repeatedly occurred during annual wage negotiations were absent for two consecutive years, resulting in peaceful agreements.

This is analyzed as a result of recognizing the need for joint labor-management efforts to overcome the crisis in the automotive industry caused by the domestic social and economic difficulties due to the novel coronavirus disease (COVID-19) and the global economic downturn.

Earlier, Hyundai Motor labor and management adopted a "Social Declaration for Joint Labor-Management Development and Change in Labor-Management Relations" along with the wage negotiation settlement. The declaration includes securing future competitiveness of domestic plants and employment stability for current employees, responding to changes in the future automotive industry such as the expansion of electric vehicles, operating job transition programs in preparation for future industrial changes, realizing labor-management relations together with customers and the public, supporting mutual growth with parts suppliers to overcome the automotive industry crisis, and achieving labor-management and customer satisfaction through quality improvement.

President Moon also positively evaluated these changes in Hyundai Motor's labor-management relations at the "Eco-friendly Future Car On-site Visit" event held that day. President Moon praised, "From the early days of the COVID-19 outbreak, labor and management joined forces to carry out preventive activities within the company as well as support local communities and parts suppliers," and added, "Labor and management adopted the 'Social Declaration for Joint Labor-Management Development and Change in Labor-Management Relations' to respond to future changes in the automotive industry, ensure employment stability, and promote mutual growth with parts suppliers."

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