"Production-Disrupting Action"... HD Hyundai Heavy Industries Union Announces Full-Scale Strike After Chuseok

[Financial News] The Hyundai Heavy Industries Branch of the Korean Metal Workers' Union (KMWU) declared negotiations at an impasse on the 18th and announced all-out action. After failing to reach an agreement before Chuseok as demanded, the union said it would launch a full-scale strike after the holiday, halting production processes themselves.
After announcing the breakdown of negotiations that morning, the Hyundai Heavy Industries branch held a Central Strike Action Committee meeting and issued a newsletter announcing an all-out struggle targeting even the HD Hyundai group. The strike committee said, "A settlement before Chuseok is off the table. The level of collective action and the front line will change. We are moving beyond partial strikes to an all-out struggle that will have a real impact on production. We will not stop at merely pounding the shop floor; the blade's tip is aimed at the heart of HD Hyundai capital, which holds the decision-making power."
HD Hyundai Heavy Industries had previously presented a proposal centered on a 110,000-won increase in base pay, but the union rejected it. The union then brought forward the schedule and intensity of a strike involving all members. Joseon Noyeon also announced that the unions of six companies would launch a joint strike if no agreement was reached before Chuseok. In response, labor and management held marathon negotiations every day in an effort to reach a tentative agreement. The talks ultimately broke down.
The union continues to demand a 30% share of operating profit. Although the Ministry of Employment and Labor (MOEL) issued guidelines stating that the issue was not subject to industrial action, the union is using projections that this year's operating profit could rise to as much as twice last year's figure as bargaining leverage. It is demanding a substantial increase in base pay as part of the profit-sharing arrangement. The strike committee also stated bluntly, "The reason for the breakdown is insufficient fixed pay. We will secure a fair share commensurate with the boom."
The union's means of forcing its demands through is a full-scale strike. Although previous partial strikes involved all union members, actual participation was limited, and the impact on operations was restricted because production was divided into separate processes. However, a full-scale strike that shuts down every process and blocks logistics as well would inevitably disrupt production. The union also staged a full-scale strike last year, after a three-year hiatus.
The union has decided not to strike next week, ahead of Chuseok. After the holiday, labor and management will discuss whether to resume negotiations and launch a full-scale strike.

[email protected] Kim Yun-ho Reporter