The wage and collective bargaining negotiations between Hyundai Transys' labor and management, which have dragged on for six months, are reported to have made recent progress. However, the performance pay issue, which was the main reason for the labor union's strike, still shows significant differences in opinions between labor and management, leaving the possibility that negotiations may extend into next year.
According to Hyundai Motor Group on the 20th, Hyundai Transys' labor and management found most points of agreement in recent negotiations regarding the collective agreement and the union's separate demands. The union resumed overtime and weekend work starting from the 6th and decided to engage in intensive negotiations for two weeks.
Labor and management agreed on several points in the collective agreement, including ▲interest-free installment loans for electric vehicle purchases ▲increased payments for congratulatory and condolence gifts ▲vacation allowance increases ▲expansion of funds for purchasing or renting dwellings and extension of repayment periods. The separate demands included ▲new employee recruitment ▲increased welfare points ▲increased congratulatory payment for childbirth and expanded support for infertility treatments.
Negotiations for Hyundai Transys' labor-management collective agreement began in June. Labor and management held 15 rounds of negotiations until early last month but could not narrow their differences, leading to a month-long total strike by the union. During this process, the union was criticized for causing significant disruption to residents by repeatedly protesting near the home of Chung Eui-sun, chairman of Hyundai Motor Group, located in Hannam-dong, Yongsan District, Seoul.
The atmosphere of negotiations between labor and management changed after the group personnel changes on the 13th of last month, during which CEO Yeosoo Dong stepped down and Vice President Baek Cheol-seung was appointed as the new CEO. After assuming office, CEO Baek sent an email to all employees suggesting, "Let's work together with a more open mind to resolve the issues." After meeting with CEO Baek earlier this month, the union agreed to resume overtime and weekend work and start intensive negotiations.
However, labor and management have not found common ground on the wage increase amount and performance pay level. The management proposed a wage increase of 96,000 won and additional performance pay of 12 million won on top of 400% of the base salary. In response, the union opposed this, demanding a base salary increase of 159,800 won and 2% of last year's revenue as performance pay. The total amount of performance pay requested by the union is approximately 240 billion won, which is double Hyundai Transys' operating profit from last year.
A Hyundai Motor Group official noted, "It is true that the atmosphere of negotiations between Hyundai Transys' labor and management has changed recently, but I understand that there are still significant differences in opinions on wage and performance pay matters." He added, "Both sides recognize that the business environment may worsen next year, and there is still a possibility of reaching an agreement within the year."
If the Hyundai Transys collective agreement is concluded, negotiations for other subsidiaries within the group, such as Hyundai Steel and Hyundai Wia, are expected to gain momentum. The labor unions of these subsidiaries have also demanded a reduction in the wage and performance pay gap with finished vehicle manufacturers such as Hyundai Motor Company and Kia.