Hyundai Motor(005380) the labor union will begin a partial strike on the 13th due to difficulties in wage negotiations.
According to the Hyundai Motor union, all members will stage a partial strike for two hours a day for three days from this day through the 15th. It is the first strike this year and the second consecutive year after last year. On the 15th, it plans to hold a general strike rally and join the nationwide strike by the Korean Metal Workers' Union.
The strike will proceed with day-shift and night-shift teams stopping the production line two hours earlier than their shift end times, respectively. That amounts to a four-hour daily disruption and a total of 12 hours of downtime over three days. In the industry, there is also an outlook that if the strike proceeds as scheduled, it will result in sales losses of around 200 billion won.
The strike follows the breakdown of the 15th round of talks on the 8th. Management delivered a third proposal that included: ▲ an 89,000 won increase in monthly base pay (excluding step increases) ▲ a performance bonus of 350% + 10 million won △ and a grant of 15 shares in company stock.
However, the union finalized the strike schedule, saying it falls short of members' expectations. This year, the union is demanding: ▲ a 149,600 won increase in base pay ▲ a performance bonus equal to 30% of the previous year's net profit ▲ an 800% increase in bonuses ▲ reinstatement of dismissed workers ▲ and an extension of the retirement age.
Chief Executive Choi Young-il of Hyundai Motor said in a statement on the 10th, "All we have gained from past strikes are irrecoverable production losses and wage damage, along with harsh criticism from customers and the public," adding, "There has never been a case where more was offered or wage losses were compensated because of a strike."