'Strike Crisis' Hyundai Motor Labor and Management, Negotiations Set to Resume

Hyundai Motor Management Sends Official Letter to Union Requesting Resumption of Negotiations: "We Will Take a Progressive Stance, So Please Resume Talks"

[Image source=Yonhap News]

[Asia Economy Reporters Yu Je-hoon and Lee Ki-min] Hyundai Motor Company has eased concerns over a strike threat for the first time in three years. This comes as labor and management show signs of resuming wage and collective bargaining negotiations this year, just before the strike deadline.

According to industry sources on the 13th, Hyundai sent an official letter to the union expressing its position on resuming wage and collective bargaining negotiations. This followed President Ha Eon-tae's meeting with Union Chairman Lee Sang-soo on the 9th, with the company taking the initiative to officially request the resumption of talks.

Earlier, when the Hyundai Motor union and management failed to narrow their differences in wage and collective bargaining negotiations, the union declared the breakdown of talks at the end of last month and proceeded with strike preparations. On the 7th, a strike authorization vote was held among all union members, passing with a 73.8% approval rate. The day before, the Central Labor Relations Commission issued a decision to suspend labor dispute mediation, securing the union's legal right to strike.

Having received the ball from management, the union planned to hold a negotiation committee meeting in the afternoon to decide whether to resume talks. Soon after, the Central Strike Countermeasures Committee was scheduled to convene to discuss strike tactics depending on the negotiation resumption situation.

A Hyundai Motor union official stated, "Management conveyed their intention to approach negotiations with a progressive attitude and proposed resuming talks," adding, "We will decide on whether to resume negotiations and future strike tactics through the afternoon negotiation committee meeting and the strike countermeasures committee."

For now, both labor and management aim to reach an agreement on wage and collective bargaining before this summer's vacation, suggesting a possibility of a dramatic settlement during negotiations. However, given the significant differences between the two sides, there are also considerable expectations that negotiations will not proceed smoothly. The union demands a basic wage increase of 99,000 KRW and a performance bonus of 30% of net profit, while management has proposed a basic wage increase of 50,000 KRW, a performance bonus of 100% plus 3 million KRW, and a quality improvement incentive of 2 million KRW. The industrial transition agreement and retirement age extension (to 64 years) remain additional sticking points.

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