Will a Summer Strike Occur... Auto Industry Eyes Metalworkers' Union

[Asia Economy Reporter Kiho Sung] The automotive industry, which is experiencing an unprecedented crisis due to the novel coronavirus infection (COVID-19), is becoming increasingly tense as the full-scale wage and collective bargaining agreement (wage and collective agreement) negotiation season approaches. There are concerns that conflicts may be prolonged because the finished car labor unions are demanding significant wage increases despite the COVID-19 situation. Additionally, the Metal Workers' Union is pushing for a joint strike, and if movements supporting this emerge, the impact could be even greater.

According to the automotive industry on the 8th, the Kia Motors union finalized the executive demands through the wage and collective agreement discussion meeting for executive officers held on the 3rd. A Kia Motors union official explained, "The final demands will be confirmed through a temporary delegates' meeting on the 13th. After delivering the demands to the company, a review period of about two weeks is usually required, so a labor-management meeting will be held before the summer vacation on the 3rd of next month, and full-scale negotiations will begin after the summer vacation."

Although the final demands have not yet been decided, it is known that the tentative wage increase proposal of the Kia Motors union was determined based on the Metal Workers' Union's demands. Earlier, the Metal Workers' Union set this year's wage increase rate at 6.51% (120,304 KRW) and is negotiating with the Metal Industry Employers' Council.

The Hyundai Motors union is also scheduled to hold a temporary delegates' meeting on the 21st to prepare the wage and collective agreement demands. A Hyundai Motors union official stated, "The wage and collective agreement demands are currently in the final stages, and we aim to hold a labor-management meeting before the summer vacation." Hyundai Motors is also reportedly preparing a proposal in line with the Metal Workers' Union's demands.

The Korea GM union plans to raise the basic wage by 120,304 KRW per month (excluding seniority increments) and prepare a performance bonus (average 22 million KRW) equivalent to 400% of the ordinary wage plus an additional 6 million KRW, and will hold a labor-management meeting on the 21st. The Renault Samsung Motors labor and management began full-scale negotiations with a wage and collective agreement kickoff meeting on the 6th. Previously, the Renault Samsung union finalized demands including a basic wage increase of 71,687 KRW (4.6%), a one-time payment of 7 million KRW due to the impact of COVID-19, and the establishment of a 1.2 billion KRW development fund.

The problem is that the Metal Workers' Union is pushing for a joint strike. Following the breakdown of the 2020 wage and collective agreement negotiations, the Metal Workers' Union has been conducting a strike authorization vote from the 6th to the 8th. Hyundai Motors, Kia Motors, and Korea GM are affiliated with the Metal Workers' Union. Since the finished car unions are enterprise unions, they have not submitted a strike mediation application. However, given the difficulty for finished car companies to accept the unions' wage increase demands due to COVID-19, if individual negotiations stall, the possibility of a joint strike cannot be ruled out.

An official from a finished car company union said, "The finished car unions are not affected by this Metal Workers' Union strike mediation," but added, "However, if it is judged that a strike is necessary during individual negotiations, or if a concentrated strike after the summer vacation is decided, participation will be considered."