Stubborn Demands of Strong Labor Unions... Companies Suffer

Hyundai Motor's Strong Union Takes Power After 2 Years, Labor-Management Conflicts Expected to Intensify Next Year

[Asia Economy Reporter Changhwan Lee] A strong labor union is returning to Hyundai Motor Company after two years. As the automotive industry undergoes a major paradigm shift from internal combustion engines to electrification, the rise of a strong labor union is expected to increase conflicts related to employment.

According to the Hyundai Motor Union on the 8th, candidate number 4, Ahn Hyun-ho, was finally elected in the runoff election for the 9th executive (branch chief) of the Metal Workers' Union Hyundai Motor Branch, which concluded early that morning.

Out of a total of 48,749 union members, 41,444 (voter turnout 85.02%) participated in this runoff vote, where candidate Ahn received 22,101 votes (53.33%), defeating candidate number 2, Kwon Oh-il, who received 19,122 votes (46.14%), and was elected as the next branch chief. The new branch chief’s term will begin on January 1 of next year and last for two years.

In the first round of voting held on the 2nd, Ahn also advanced to the runoff as the top candidate. Lee Sang-soo, the current union branch chief who led three consecutive years of labor-management agreements without disputes, ran as candidate number 1 but lost in the vote. Lee, who has been in power for two years from last year to this year, was evaluated as having managed labor-management relations relatively stably.

On the other hand, Ahn, who will take charge of the new executive team, is classified as the most militant among the candidates. He was the chief deputy chairman of the 'Metal Solidarity' and led the opposition struggle and strike against Hyundai Motor’s layoffs in 1998. In 2007, he was also imprisoned due to a violent incident related to the differential payment of Hyundai Motor’s performance bonuses.

In this election, he pledged to build a strong union through promises such as applying the full bonus as ordinary wages, improving treatment for general and female union members, and preparing employment measures for the Fourth Industrial Revolution, signaling conflicts with the company.

The emergence of a strong labor union at Hyundai Motor is expected to become a variable in next year’s management. Especially during the electrification transition process, workforce adjustments are inevitable, but the new executive team is demanding employment expansion including retirement age extension, raising the likelihood of intensified conflicts.

Kim Cheol-hee, head of the Labor-Management Relations Support Team at the Korea Employers Federation, said, "With the rise of a strong labor union executive team, labor-management relations at Hyundai Motor will become very difficult next year," adding, "Considering next year’s elections, the new executive team is expected to exercise political power inside and outside the company in some form."

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