4.5-Day Workweek and Progressive Severance Pay... Pledges of Hyundai Motor's New Union Chief

Jongchul Lee Elected as the 11th Hyundai Motor Union Branch Chief

In the Hyundai Motor Company labor union branch chief election, Lee Jongcheol, who is considered a "hardliner," has been elected.

Lee Jongcheol, the 11th Union Branch Chief of Hyundai Motor Company. Hyundai Motor Company Union

Lee Jongcheol pledged to reduce production line working hours by one hour, introduce a progressive severance pay system, and implement additional recruitment points for candidates from local factory regions. As a result, considerable friction is expected in future labor-management negotiations.

The Hyundai Motor Company branch of the Korean Metal Workers' Union announced on December 10 that, according to the ballot count for the 11th executive election, Lee Jongcheol received 17,879 votes (54.6%) out of a total of 42,593 eligible voters. Candidate Lim Bugyu received 14,228 votes (43.44%).

Lee Jongcheol, a member of the Metal Solidarity, joined Hyundai Motor Company in 1996. He has served as a union delegate, head of the Ulsan Plant 4 business division, collective bargaining committee member, and labor committee member at the Ulsan Regional Labor Relations Commission. This was his first run for branch chief. In 2008, he received a suspended prison sentence for his involvement in the "opposition to labor law revision protests," which contributed to his reputation as a hardline union member.

In this election, he campaigned on promises including the introduction of a progressive severance pay system, securing an 800% bonus, implementing a 35-hour workweek, and expanding new hiring.

The progressive severance pay system increases the severance pay rate according to years of service. Lee Jongcheol proposed that employees with five years or more but less than ten years of service would receive two months' pay as severance, those with ten years or more but less than fifteen years would receive three months' pay, those with fifteen years or more but less than twenty years would receive five months' pay, and those with more than twenty years would receive seven months' pay.

The introduction of the 35-hour workweek involves reducing the current 40-hour workweek to 35 hours per week, starting next year with research and administrative staff and the Jeonju plant, and then gradually expanding to other plants. For research and administrative staff, a 4.5-day workweek will be implemented, while for technical (production) staff, daily working hours will be reduced by one hour.