Hyundai Motor Union Expresses Solidarity
Possibility of Declaring Breakdown in Wage Negotiations
[Asia Economy Reporter Ki-min Lee] Following Hyundai Motor Company, Kia is facing a turning point in this year's wage and collective bargaining agreement (CBA) negotiations. Although Hyundai Motor's labor and management avoided a strike crisis for the first time in three years by resuming negotiations, the Kia union is highly likely to follow Hyundai's lead by declaring a breakdown in the CBA talks and securing the right to strike. As Kia has expressed solidarity by supporting Hyundai's strike actions, and Korean GM is also awaiting the Central Labor Relations Commission's dispute mediation results, the spark for strikes in the completed vehicle industry remains alive.
According to industry sources on the 15th, Choi Jong-tae, head of the Metalworkers' Union Kia branch, warned at the 6th main negotiation session held yesterday at Kia Sohari Plant headquarters in Gwangmyeong, Gyeonggi Province, "This week's negotiations will be an important turning point in the 2021 CBA," adding, "We hope the management will review and present proposals that the union members on the ground can accept." Kia labor and management will hold the 7th main negotiation session from 2 p.m. today following yesterday's talks.
Kia labor and management have yet to narrow their differences on key agenda items. The union is demanding, under the banner of "fair performance distribution" mentioned by Hyundai Motor Group Chairman Chung Eui-sun in this CBA, a fixed monthly basic wage increase of 99,000 KRW, a 30% performance bonus based on last year's operating profit, extension of the retirement age up to 65 years old, reinstatement of dismissed workers and withdrawal of unfair disciplinary actions, reduction of working hours to 35 hours per week, abolition of limits on working hour exemptions (time off), increase in line allowances, and establishment of a labor intensity committee. The management has reportedly stated that "regarding the union's demands, we will consider last year's agreement and this year's circumstances," but they find it difficult to accept the demands.
If negotiations face difficulties, the union plans to follow the same procedure as Hyundai Motor by applying for dispute mediation at the Central Labor Relations Commission. Having conducted a 14-day strike last year, the Kia union recently expressed solidarity through an internal newsletter, stating, "We support the overwhelming resolution for strike action by the Hyundai Motor branch and will fight together."
The Korean GM union is also taking steps toward a strike. At the 11th CBA negotiation session held on the 13th, Korean GM management proposed a 20,000 KRW increase in the basic wage (including seniority pay), maintenance of regular salary increases for office workers, a total encouragement bonus of 3.5 million KRW, and an extension of Spark production until August 2022, citing a production loss of 80,000 units in the first half of this year. However, the union rejected the management's proposal, stating it falls short of their demands, which include a fixed monthly basic wage increase of 99,000 KRW, a performance bonus amounting to 150% of the ordinary wage, and a 4 million KRW encouragement bonus for overcoming COVID-19 and living expenses. The union decided to suspend negotiations until a revised proposal is presented. Notably, the Korean GM union secured a 76.5% approval rate in a strike vote and applied for labor dispute mediation at the Central Labor Relations Commission on the 7th. If the commission's decision comes as early as this week, the union is expected to secure the right to strike.
Renault Samsung Motors also cannot completely rule out the possibility of a strike. The union held a temporary delegates' meeting on the 12th and began discussions on transitioning to the Metalworkers' Union system. Previously, the current executive attempted to transition to the Metalworkers' Union system in 2018 and last year, but these efforts were rejected in union member votes.
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