Hyundai Motor(005380) the labor union decided on an additional partial strike on the 16th. With this year's wage talks between labor and management at an impasse, the union is ratcheting up the pressure. Production disruptions and losses from the strike are expected to grow.
The Hyundai Motor chapter of the Korean Metal Workers' Union held a central strike committee meeting on the 16th and decided on a four-hour partial strike each day from the 20th to the 22nd. As a result, technical (production) employees on the morning and afternoon shifts will leave work at 10:50 a.m. and 7:30 p.m., respectively. This doubles the strike time from the first walkout on the 13th to the 15th, when it was two hours a day.
With no progress in this year's wage talks, the union appears to be stepping up its offensive. The union said, "Management is not presenting a forward-leaning proposal," adding, "However, if talks resume, we will hold the strike in abeyance."
The last official negotiation between labor and management was on the 8th. At the time, management's third proposal included raising the monthly base pay by 89,000 won, a performance bonus of 350% plus 10 million won, and 15 shares of stock. But the union did not accept it. Over that period, Hyundai Motor labor and management have held 15 rounds of talks since a kickoff meeting on May 6.
The biggest sticking point between labor and management is the separate demands. In addition to a base pay increase, the union is strongly demanding a 50% increase in bonuses (currently 750%→800%), the reinstatement of dismissed union members, and an extension of the retirement age. If the wage talks are not concluded next week, this year's negotiations are expected to drag on.
In response, Hyundai Motor CEO Choi Young-il issued a statement saying, "Contrary to the original purpose of wage bargaining, we are being pushed onto the path of a strike, blocked by the union's rationale of reinstating dismissed workers—which is not a subject of bargaining—and extending the retirement age and increasing bonuses, which are matters for collective negotiations," adding, "At the end of a strike, what remains will be only 'accumulating production losses, wage damage, and external criticism.'"
He added, "The strike is causing massive production disruptions and accumulating wage damage for employees, and partner companies are also being directly hit by production stoppages and delivery disruptions," emphasizing, "Please coolly judge whether it is right to continue accumulating only losses and damage over issues that countless rounds of talks over the years have failed to resolve."
Meanwhile, the GM Korea union (Korean Metal Workers' Union GM Korea chapter) also decided to launch a partial strike on the 20th. The morning shift plans to strike for four hours starting at 11:40 a.m., and the afternoon shift starting at 8:20 p.m. Earlier, the GM Korea union held a partial strike for eight hours a day for two days from the 15th.