Hyundai Transys Union Expels Member for 'Overtime Work'... "Union Provokes Job Insecurity" Backlash Grows

Growing Resistance Against Union Leadership

The labor union of Hyundai Transys, a parts subsidiary of Hyundai Motor Group, is facing controversy after expelling union members who violated the directive of ‘not working overtime or special shifts.’ Earlier, the union had conducted a strike for about a month starting in June this year due to unresolved differences in wage collective bargaining negotiations with management, and subsequently internally established a policy to refuse overtime work, emphasizing it to union members. Amid critical views within the union regarding protests in the residential area of Hannam-dong, where Hyundai Motor Group Chairman Chung Euisun’s residence is located, the union leadership’s coercive stance has been increasing resentment against the union leadership.

According to related industry sources on the 4th, the Hyundai Transys union leadership recently held an executive committee meeting and expelled five union members. After the strike ended on the 11th of last month, the leadership issued a directive to refuse overtime and special shifts, and the expulsion was due to repeated violations of this directive. It is reported that the union disclosed the names, affiliations, and the results of the approval vote of these expelled members along with the expulsion announcement.

In a residential area of Hannam-dong, Seoul, the Hyundai Transys labor union continues its picket protest. Photo by Hyundai Transys

Previously, during last month’s strike, the union had disclosed the names and affiliations of 51 union members who voluntarily came to work, and expelled them. At that time, they were labeled as ‘organizational destroyers,’ which sparked controversy. Even after deciding to end the strike last month, the union reportedly formed a patrol team mainly composed of union officials to create an atmosphere preventing overtime and special shifts.

Experts say that workers have the right to return to the workplace and work during a dispute period according to their personal will. Creating an intimidating atmosphere or exerting power at the union level to suppress this is considered illegal. Voices of criticism have also emerged among employees. On workplace communities, several posts have appeared saying things like ‘Did the expelled union members not participate in the strike from the beginning?’ ‘The union is fostering job insecurity and conflicts among workers,’ and ‘If the expelled are organizational destroyers, then is the leadership company destroyers?’

The conflict within the Transys union was triggered by the leadership’s insistence on continuing protests in the residential area. Although protests have been ongoing at the chairman’s residence to strengthen bargaining power during negotiations, many evaluate their effectiveness negatively. Since negotiations are resuming after the strike, it is said that new strategies or methods should be considered, but the union stubbornly insists on protests in the residential area.

Employees of partner companies holding a rally to resolve the suspension of the Hyundai Transys strike on the 6th. Photo by Hyundai Transys

The union has been conducting guerrilla-style protests, such as hanging banners and holding placards, about ten times since late October. An industry insider said, “Holding placards with provocative phrases during protests has caused discomfort among nearby residents and merchants unrelated to the wage negotiations.”

To compensate for production disruptions caused by the prolonged strike, the company entered an emergency management system starting from the 11th of last month. All executives, including management, voluntarily agreed to return 20% of their annual salary. The company’s union is demanding a basic wage increase of 159,800 KRW and a performance bonus of 2% of sales (about 240 billion KRW), which is twice the company’s total operating profit last year, making negotiations difficult.