Hyundai Motor President: "Despite Regrets Over Provisional Wage Agreement, Labor and Management Must Overcome Crisis Together"

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] Ha Eontae, President of Hyundai Motor Company, urged ahead of the union members' vote on the recently agreed tentative wage negotiation agreement for this year, saying, "If it is not smoothly concluded, considering the ongoing risk of the resurgence of the novel coronavirus infection (COVID-19) and public opinion, it will only cause confusion and damage to both labor and management."

In a statement on the 23rd, President Ha said, "Despite the worst domestic and international conditions such as the global disaster situation of COVID-19 and the upheaval in future industries, labor and management made a difficult decision to find the best answer."

Earlier, on the 21st, Hyundai Motor labor and management reached a tentative agreement on this year's wage negotiation, focusing on wage freeze and performance bonuses. This is the third time Hyundai Motor labor and management have proposed a tentative wage freeze agreement, following the 1998 foreign exchange crisis and the 2009 global financial crisis.

President Ha stated, "Since the outbreak of COVID-19, exports have been cut off, production lines have stopped due to parts supply disruptions, and operating profits plunged by -30% in the first half and -52.3% in the second quarter," adding, "Although some on-site workers are fostering vague expectations, threats such as rapid exchange rate drops, reduction in individual consumption tax cuts, and the continued spread of COVID-19 in the US, Europe, and emerging countries remain."

He continued, "Even if there are some regrets, if we overcome this crisis well and successfully respond to changes in future industries, Hyundai Motor can take a step forward," urging, "Let labor and management, together with customers and the public, overcome the crisis and create hope for a new leap forward."

Meanwhile, if the tentative labor-management agreement is approved in the union members' vote on the 25th of this month, it will be fully settled.