Hyundai Motor Faces Emergency in Labor Negotiations Amid Surge in COVID-19 Cases

[Image source=Yonhap News]

[Asia Economy Reporter Ki-min Lee] Amid a COVID-19 cluster infection at Hyundai Motor Company, a state of emergency has been declared regarding wage and collective bargaining agreements (wage and collective bargaining).

According to industry sources on the 27th, an executive A, who is a negotiator for Hyundai Motor's management, recently tested positive for COVID-19, prompting Ulsan health authorities to conduct an epidemiological investigation on those who attended the negotiation site.

Ulsan health authorities have assessed 115 people related to the confirmed case at the negotiation site as simple or close contacts and active monitoring targets, and have notified them of the results. Among them, 32 people were classified as close contacts requiring a two-week quarantine, and 22 were designated as active monitoring targets.

The close contacts underwent COVID-19 testing over the weekend. For those under active monitoring, health authorities plan to conduct additional tests at the in-house testing center on the 29th of this month.

Mr. A works at the Autoway Tower in Gangnam-gu, Seoul, where Hyundai Motor's Domestic Business Headquarters, which recently experienced a cluster infection, is located. The Autoway Tower houses the Domestic Business Headquarters and the Autonomous Driving Research Institute, making it a key headquarters.

Recently, 11 employees at Hyundai Motor's Domestic Business Headquarters tested positive for COVID-19. As a result, Hyundai Motor has issued strengthened work-from-home orders in accordance with the guidelines from the Korea Disease Control and Prevention Agency.

A Hyundai Motor official stated, "It is true that Mr. A works at the Autoway Tower where recent confirmed cases occurred," but added, "The connection to the cluster infection at the Autoway Tower has not yet been confirmed."

Industry insiders expect disruptions in Hyundai Motor's wage and collective bargaining negotiations due to the self-quarantine of labor-management negotiators. Hyundai Motor began formal negotiations on the 26th of last month with an introductory meeting at the Ulsan plant main building. Originally, the labor and management sides held the 11th round of negotiations on the 25th and planned the 12th round on the 29th.

However, Hyundai Motor plans to proceed with negotiations using personnel who are simple contacts or have tested negative for COVID-19, and some practical negotiations will be conducted through non-face-to-face means such as video conferencing. A Hyundai Motor official said, "We plan to conduct wage and collective bargaining using both face-to-face and non-face-to-face meetings," adding, "However, this may change according to the guidelines of health authorities."