"In the Meantime"... Hyundai Motor Union Considering Strike After 3 Years

Despite Semiconductor Supply Shortage and COVID-19 Pandemic,
83% Approval for Filing Dispute Mediation with Central Labor Relations Commission
Additional Negotiations Possible Depending on Employer's Acceptance

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] The Hyundai Motor labor union has chosen to strike. Despite the ongoing semiconductor parts supply shortage and the global economy entering a recovery phase only to face the obstacle of a COVID-19 resurgence, the union remains unfazed. The Hyundai Motor union, waving the strike flag, is raising its voice as a "legitimate right of workers," but critics argue that this is a typical self-centered behavior of a major corporation’s labor union.

According to the Hyundai Motor union on the 8th, 83.2% of union members who voted in this year’s strike-related ballot supported the strike. The union conducted the vote the previous day targeting all 48,599 union members at the Ulsan plant, as well as the Jeonju and Asan plants, Namyang Research Center, and sales outlets. Out of all eligible voters, 43,117 participated, with 83.2% in favor, 11.5% opposed, and 5.3% invalid votes.

Earlier, when this year’s wage and collective bargaining negotiations hit a deadlock, the union declared the breakdown of talks on the 30th of last month and applied for dispute mediation with the Central Labor Relations Commission (CLRC). The union demanded a wage increase of 99,000 KRW (excluding regular and seniority increments), a 30% performance bonus, extension of retirement age (up to 64 years), and maintenance of domestic plant jobs. Meanwhile, the company proposed a basic wage increase of 50,000 KRW (including seniority increments), a 100% performance bonus plus 3 million KRW, a 2 million KRW quality improvement incentive, and welfare points worth 100,000 KRW, but the union rejected these offers.

If the CLRC decides to suspend mediation, the union, having passed the strike vote among its members, can legally proceed with the strike. The CLRC is expected to announce its decision on mediation suspension on the 12th. Accordingly, if the CLRC suspends mediation, the union plans to hold a Central Dispute Countermeasures Committee meeting on the 13th to discuss further negotiations with management, the possibility of a strike, and to prepare future response strategies. If Hyundai Motor enters a strike this year, it will be the first time in three years since 2018. In 2019, although the strike vote was approved, it was not executed due to the impact of the Korea-Japan trade dispute, and last year, no strike vote was held due to the COVID-19 pandemic.

If the union proceeds with a strike amid overcoming challenges such as the vehicle semiconductor supply shortage, it is expected to shock vehicle production and sales. Professor Pil-soo Kim of the Department of Automotive Studies at Daelim University said, "Despite the semiconductor supply shortage, vehicle sales recovered significantly in the first half of this year," expressing concern that "a strike by the union would ultimately reverse this momentum." Professor Kim also pointed out, "In a situation where COVID-19 is rapidly resurging, if strike actions such as rallies occur, public perception of the Hyundai Motor union will worsen even further."

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