Dramatic Agreement or Strike... Will Hyundai Motor Labor and Management Find a Breakthrough at the Brink?

Union to Reconsider Strike if No Agreement Reached by the 13th

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] Hyundai Motor Company's labor and management enter a critical turning point this year in reaching a wage negotiation agreement. The labor union has conveyed additional demands along with the launch ceremony of the Central Dispute Countermeasure Committee. However, due to significant differences from the company's proposal, smooth negotiations are expected to be difficult.

According to the automotive industry on the 9th, the Hyundai Motor labor union held the launch ceremony of the Central Dispute Countermeasure Committee in front of the Ulsan plant square on the afternoon of the 7th and demanded additional proposals from management.

Hyundai Motor management previously delivered their first proposal to the union during the 13th negotiation session resumed after two weeks on the 6th. The proposal included a basic wage increase of 89,000 KRW (including seniority increments), a performance bonus of 200% plus 3.5 million KRW, and a special encouragement bonus of 50%.

However, the union immediately rejected the management's proposal.

Union Chairman Hyunho Ahn stated, “After gathering opinions from union members across various sectors regarding the management’s wage-related proposal, the common consensus was that it was insufficient,” adding, “Since there is little time left before the holidays, an additional comprehensive proposal must be presented through weekend practical negotiations before next week’s talks.”

Both sides will engage in negotiations this weekend to narrow their differences. Subsequently, main negotiations will continue until the 13th.

If the union fails to find common ground by the 13th, they plan to hold a second dispute countermeasure committee meeting to decide on whether to strike. The union has decided to start pressuring management by refusing all weekend overtime work of union members on the 9th.

The union previously declared a breakdown in negotiations during the 12th session held on the 22nd of last month when management did not present a comprehensive proposal.

Since then, they have secured legal strike rights through resolutions for dispute by delegates, union member approval votes, and dispute mediation meetings at the Central Labor Relations Commission.

In this year’s wage negotiations, the union demands a basic wage increase of 165,200 KRW (excluding seniority increments), payment of 30% of net profits as performance bonuses, recruitment of new personnel, extension of retirement age, abolition of the wage peak system, and establishment of a domestic plant for future vehicles.

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