According to several South Korean newspapers, looks like another strike is flying over Hyundai, after the South Korean carmaker announced a break in negotiations at the 13th collective bargaining agreement held on the 29th. The union decided not to accept the proposals proposed by the management heralding a full-scale industrial action.
The management proposed to the union with the 30th as a deadline an increase of 50,000 won (US $44,21) in basic salary including bonuses, a 100% bonus + 3 million won (US $2,652), 2 million won in incentives for quality improvement (US $1,768), and 100,000 points in two consecutive shifts in 2021.
However, the union said the level fell short of expectations. The proposals initially requested by the union were a basic wage increase of 99,000 won (US $87,54 – almost twice) and a 30% of the net profit for the year as a bonus.
The union declared a break in negotiations and immediately filed an application for mediation with the Central Labor Relations Commission on the same day. The adjustment period is until the 12th of the next month. On the 5th July a special meeting of delegates will be held to decide on an industrial action, and then on the 6th and 7th, a vote for or against industrial action will be held for union members.
However, further negotiations were left open. The union plans to resume the dispute if it receives a satisfactory bargaining request from the management. However, the industry view is that it will be difficult for the management to make additional proposals to satisfy the union’s demands.
Management regards the union’s proposal to extend the retirement age as an unacceptable demand under the current management situation, and the union, on the other hand, is holding its opposition to the proposal to extend the collective bargaining cycle from two to three years.
If the union goes on strike, Hyundai Motor’s future mobility business is also expected to suffer. It announced its goal of launching a total of 23 electric vehicles by 2025, with the first dedicated platform electric vehicle, the IONIQ 5, this year. An auto industry official said, “If the strike proceeds, it is inevitable that Hyundai Motor’s future plans will be revised.”