Hyundai Motor Company labor union declares breakdown in this year's wage negotiations, moves toward strike

[Financial News, Ulsan = reporter Choi Soo-sang] The Hyundai Motor Company branch of the Korean Metal Workers' Union (KMWU) declared a breakdown in this year's wage negotiations and began steps toward a strike.
At the 11th main bargaining session held on the 12th, the Hyundai Motor Company labor union said management had finally rejected a lump-sum proposal on separate demands, including wage-related requests, and declared the talks broken down.
The union condemned management for avoiding responsibility despite having ample room to pay, citing the company's record-breaking performance. It said it would take stronger action to protect members' dignity and rights.
The union plans to file for mediation over labor disputes with the National Labor Relations Commission on the 15th, hold an extraordinary delegates' meeting on the 23rd to set the direction of the strike, and then conduct a strike authorization vote among all members around the 25th.
If the National Labor Relations Commission determines that the gap between labor and management is too wide and orders mediation to be suspended, and if more than half of all union members vote in favor in the strike authorization ballot, the union can legally go on strike.
The union said, "Management kept repeating that things were difficult, and it even refused to make a lump-sum proposal on the 12 items in the separate demand package, which are the minimum conditions for progress in the talks." It added, "That is effectively no different from declaring that it has no intention of negotiating."
This year, the union is demanding a monthly base-pay increase of 149,600 won, excluding seniority-based raises, a performance bonus equal to 30% of last year's net profit, and guarantees on employment and working conditions related to artificial intelligence (AI).
Its demands also include a full monthly salary system, raising bonuses from 750% to 800%, shorter working hours without increasing labor intensity, extending the retirement age in line with the start of National Pension benefits, up to age 65, and hiring additional staff.
In remarks at the bargaining table, Lee Jong-cheol, chairperson of the Hyundai Motor Company branch, said, "Even after more than a month of review, the absence of a lump-sum proposal from management is proof that it has no will to negotiate." He added, "If talks are to continue, there must be a proposal. The union is declaring a breakdown in negotiations, but we will keep the doors open for working-level talks and the employment stability committee."
Last year's negotiations were settled after the union carried out three partial strikes.
ulsan@fnnews.com Choi Soo-sang Reporter