The Hyundai Motor labor union, which went on strike for the first time in seven years, has reached a tentative agreement centered on a 100,000 won increase to the base salary.
According to industry sources on September 9, Hyundai Motor management and the union reached a tentative agreement to raise the base salary by 100,000 won during the 21st round of wage negotiations held at the Ulsan plant starting at 2 p.m. that day. They also agreed on a performance bonus and incentive payment totaling 450% plus 15.8 million won, 30 shares of stock (10 common shares and 20 preferred shares), and traditional market gift certificates worth 200,000 won. In addition, they agreed to expand the application of ordinary wages and increase fixed overtime pay by 1%.
The union’s key demand for extending the retirement age was not accepted. The union had requested to extend the current retirement age of 60 to the end of the year prior to the start of national pension payments (up to a maximum of 64). On September 5, Hyundai Motor President Lee Dongseok issued a statement indirectly rejecting the demand, saying, "Rather than getting caught up in issues that may have different interests for each job category, class, or generation, let us focus on the common agenda of all employees, which is rewarding their hard work, and bring the negotiations to a close."
Previously, the union had rejected the company’s proposal and launched a partial strike. In the negotiation on September 2, management presented a second offer that included a 95,000 won increase to the base salary, a performance bonus of 400% plus 14 million won, 30 shares of stock, and traditional market gift certificates worth 200,000 won. However, the union decided to strike, arguing that the offer was insufficient compared to the members’ performance. On September 3 and 4, the union staged two-hour strikes each day, and on September 5, a four-hour strike was held.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
