Complete Vehicle and Tire Industries' General Strike 'Threat'... This Week's Biggest Challenge

Hyundai Motor Labor-Management Main Negotiations Until the 13th... Strike Decision If Talks Fail
Renault Union Declares Negotiation Breakdown... Hankook Tire Also Holds Strike Committee on the 12th

[Asia Economy Reporter Kiho Sung] Amid worsening global supply chain issues causing difficulties for the finished car and tire industries, labor unions are escalating tensions by announcing tough measures such as strikes, heightening the sense of crisis. The Hyundai Motor Union has stated that if the management does not make a bold decision by this week, they will proceed with a strike. Renault Korea also declared a breakdown in wage and collective bargaining negotiations, and the Korea Tire & Technology’s first union has passed a strike authorization vote and is on the verge of obtaining the right to strike. Starting with the finished car and tire industries, the domino effect of the summer labor struggle ("Hatu") crisis is intensifying.

According to Hyundai Motor on the 11th, labor and management will conduct main negotiations until the 13th. Prior to this week’s main negotiations, they held two consecutive days of working-level talks on the 9th and 10th.

At the main negotiation held on the 6th, management proposed this year’s first wage increase plan, including a wage raise of 89,000 KRW (including seniority increments), a performance bonus of 200% plus 3.5 million KRW, and a 50% encouragement bonus. However, the union demanded a basic wage increase of 165,200 KRW and a performance bonus of 30% of net profit, and further requested an additional proposal, stating that the management’s offer was not satisfactory.

The union previously urged management to make a decision by refusing weekend overtime on the 9th. Furthermore, if no agreement is reached during the main negotiations held until the 13th, they plan to hold a second strike countermeasure committee meeting to decide on whether to strike. The union has already applied for dispute mediation with the Central Labor Relations Commission after negotiations broke down at the end of last month, and secured a legal right to strike through a resolution at the delegates’ meeting and a member approval vote.

The industry is closely monitoring the situation, anticipating that if Hyundai Motor’s union, which has the largest number of members in the country, fails to reach an agreement before the summer vacation and proceeds with a strike, it will have a negative impact not only on other finished car manufacturers but also on the entire domestic industrial sector.

The Renault Korea union also declared a breakdown in this year’s wage and collective bargaining negotiations on the 8th. The union strongly opposes the multi-year agreement. Management proposed raising the basic wage by 60,000 KRW annually for three years starting this year and paying performance bonuses, in exchange for changing the negotiation cycle from annual to multi-year. The union considers the multi-year agreement to be a means to weaken the union and is contemplating strike action. On the same day, Renault Korea’s union held a temporary general delegates’ meeting to discuss the schedule for securing labor dispute rights and to resolve labor disputes.

Korea Tire also held a meeting of the Central Labor Relations Commission on the same day. The Korea Tire branch of the Metal Workers’ Union under the Korean Confederation of Trade Unions has already passed a strike authorization vote among its members. If the Central Labor Relations Commission decides to suspend negotiations, granting a legal right to strike, the union plans to hold a strike countermeasure committee meeting on the 12th to review future schedules. Due to recent violent incidents and significant differences in positions between management and the first union, it is expected that reaching an agreement at the Central Labor Relations Commission will be difficult. However, since wage negotiations for the second union affiliated with the Federation of Korean Rubber Industry Workers’ Unions under the Federation of Korean Trade Unions are scheduled to begin this week, even if the first union chooses to strike, it is anticipated that the entire workplace operation will not come to a halt.

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