Hyundai Motor Union Secures Right to Strike... President Lee Dong-seok Says "Negotiations Must Continue Smoothly"

Jungnowi Decides to Suspend Labor-Management Negotiations
President Lee Officially Requests Resumption of Talks

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] The Hyundai Motor labor union has obtained the legal right to strike. If the union goes on strike this time, it will be the first strike in four years. The Hyundai Motor union is showing a tough stance, raising the possibility of a strike. The management has requested the union to resume wage negotiations this year to prevent a strike.

According to the Ministry of Employment and Labor and the completed car industry on the 4th, the Central Labor Relations Commission decided to suspend negotiations between Hyundai Motor labor and management. This was because there was a significant difference in opinions over wage and collective bargaining agreement conditions. As a result, the Hyundai Motor union has gained the legal right to strike.

Earlier, on the 1st, the union conducted a strike action vote among all 46,568 union members, with 33,436 (71.80%) voting in favor, passing the motion.

The union declared the breakdown of negotiations on the 22nd of last month. In this year’s negotiations, the union demanded ▲a basic monthly wage increase of 165,200 KRW (excluding seniority increments) ▲a 30% performance bonus based on net profit. Additionally, separate demands included ▲new personnel recruitment ▲extension of retirement age ▲job security ▲abolition of the wage peak system ▲establishment and investment in domestic factories related to the future car industry. If the strike vote is approved, it will be the first strike in four years since 2018, facing additional adversities such as semiconductor supply shortages, China lockdowns due to COVID-19, and parts shortages.

The management’s position is that it cannot accept all of the union’s demands due to worsening business conditions. Hyundai Motor President Dongseok Lee visited the union on the same day and officially requested the resumption of wage negotiations this year.

After visiting the union, President Lee stated in a press release, "We must continue discussions to promptly resume negotiations to dispel internal and external concerns and conclude them amicably." He added, "Despite crises such as the COVID-19 pandemic and the shortage of automotive semiconductors over the past few years, the company has transformed into a globally recognized enterprise through the efforts of all employees, improving performance, quality, and product competitiveness."

He continued, "While there are opportunities, concerns about stagflation and the prolonged Russia-Ukraine war are forecasting an economic recession worse than the 2008 financial crisis. Internally, production disruptions of 80,000 to 90,000 vehicles occurred in the first half of the year due to semiconductor shortages and the Cargo Solidarity strike, which is a reality," he said.

He emphasized, "The company is not saying 'we are struggling again,' but proposing to find ways together for future survival and employee job security. I believe that seeking a path for mutual growth between the company and employees is the core of the negotiations."

The Hyundai Motor union plans to hold a strike countermeasure committee meeting on the 5th to discuss resuming negotiations with management and whether to implement a strike. However, since practical negotiations have continued even after the breakdown of talks, there is a possibility that negotiations may resume.

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