Frozen labor-management conflict in the automobile industry during Dongtu (冬鬪)... "Let's escape the path of mutual destruction"

Conflict Among All Three Automakers Except Hyundai and SsangYong

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] Following Kia Motors, the Korean GM labor union will launch another partial strike next week. This move comes despite warnings of 'withdrawal' from executives at the U.S. headquarters. Additionally, the Renault Samsung Motors union is also considering a strike, indicating that amid the ongoing impact of the novel coronavirus disease (COVID-19), labor disputes in the automotive industry, which were represented by the 'Hatu (summer struggle),' are now spreading into the 'Dongtu (winter struggle)'.

Korean GM Union Decides on Partial Strike... 15 Days of Strike in This Year's Wage Negotiations

According to industry sources on the 22nd, the Korean GM union held a central dispute countermeasure committee meeting on the 20th and confirmed that workers on the first and second shifts will conduct a 4-hour partial strike from the 23rd to the 25th. In addition, the refusal of overtime and special work, which began on the 23rd of last month, will continue.

Previously, the Korean GM union carried out 4-hour strikes on the 30th of last month and the 2nd of this month, and also conducted 4-hour strikes on the 6th, 9th to 10th, and 11th to 13th. Furthermore, from the 17th to the 20th, the fourth partial strike took place, and starting from the 23rd, the fifth partial strike will begin. As a result, the Korean GM union will continue partial strikes for a total of 15 days.

This strike is a hardline measure decided just two days after GM headquarters warned of withdrawal from Korea due to union risks. Steven Kiefer, GM's head of overseas operations, warned on the 18th (local time), "If union issues are not resolved within a few weeks, there will be long-term impacts," adding, "There are options to produce in other Asian countries, including China."

Due to the strikes already conducted by the union, Korean GM has suffered production losses amounting to 20,000 vehicles. If the additionally decided strike proceeds, production disruptions will increase to approximately 25,000 vehicles.

Kia Motors Also to Conduct Partial Strike Next Week... Renault Samsung Motors Strike Imminent

Earlier, the Kia Motors union also decided to conduct a 4-hour partial strike for first and second shift workers from the 24th to the 27th. This marks the ninth consecutive year of strikes. Along with this, they have decided to completely refuse overtime work.

While Hyundai Motor Company successfully reached a no-dispute agreement for this year as well, freezing base wages for the first time in 11 years due to the impact of COVID-19, Kia Motors is showing a contrasting stance by proceeding with strikes.

Renault Samsung is also signaling conflict as the current executive team, classified as hardliners, secured reappointment. The Renault Samsung union secured the right to strike after the Central Labor Relations Commission decided to suspend mediation related to wage negotiations in October, and currently only a member approval vote remains.

Within the industry, there are concerns that wage negotiations for the three companies, excluding Hyundai Motor and SsangYong Motor which concluded negotiations without disputes, will extend beyond this year. Last year as well, the labor and management of Kia Motors, Korean GM, and Renault Samsung Motors concluded wage negotiations in the first half of this year after extending beyond the previous year.

Jung Manki, president of the Korea Automobile Manufacturers Association, stated, "It is regrettable that labor-management relations have broken down due to small-group selfishness despite very difficult circumstances," emphasizing, "In a situation where the survival of both parts suppliers and finished car manufacturers is uncertain, a generous concession is necessary to protect the ecosystem of the Korean automobile industry."