Hyundai Motor Labor and Management Resume Negotiations Today After Two Weeks

Union Agrees to Proceed with Main Negotiations and Working-Level Consultations

[Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] Hyundai Motor Company's labor and management will resume negotiations two weeks after the breakdown of this year's wage talks.

According to the automotive industry on the 6th, Hyundai Motor's labor union held the first Central Strike Countermeasure Committee meeting yesterday and decided to resume negotiations starting today.

However, the union plans to conduct main negotiations and working-level consultations until the 13th, then hold the second Strike Countermeasure Committee meeting to set future plans. Therefore, if labor and management fail to find common ground in the negotiations starting now, the union may go on strike at the second Strike Countermeasure Committee meeting after the talks on the 13th.

Even if the union resumes negotiations, it will refuse the scheduled Saturday overtime on the 9th and temporarily suspend all company-led training and all labor-management consultations related to business divisions and committees starting from the 11th.

The union previously declared the breakdown of negotiations at the 12th round of talks held on the 22nd of last month after the management did not present a comprehensive proposal. Subsequently, on the 1st, the union conducted a strike vote among all 46,568 members, with 33,436 (71.80%) voting in favor, passing the motion. Furthermore, on the 4th, the Central Labor Relations Commission decided to suspend Hyundai Motor's labor-management negotiations, granting the union the legal right to strike.

In this year's negotiations, the union demanded ▲ a basic monthly wage increase of 165,200 KRW (excluding seniority increments) ▲ a 30% performance bonus based on net profit. Additionally, separate demands included ▲ hiring new personnel ▲ extending retirement age ▲ job security ▲ abolishing the wage peak system ▲ establishing and investing in domestic factories related to the future car industry.

Hyundai Motor's labor and management have completed collective bargaining without disputes for three years from 2019 to last year, considering the Korea-Japan trade dispute and the impact of COVID-19.