Company refused to present wage proposal, union says; mediation filing set for Monday

Hyundai Motor Co.'s headquarters in Yangjae, Seoul [Hyundai Motor Co.]
Hyundai Motor Co.'s headquarters in Yangjae, Seoul [Hyundai Motor Co.]

The Hyundai Motor branch of the Korean Metal Workers' Union declared this year's wage negotiations deadlocked Friday, putting the union on a path toward a strike.

The union made the declaration at the 11th round of talks held at the main building of Hyundai Motor's Ulsan factory, saying management had "ultimately refused to present a package proposal covering 12 separate demands, including wage-related items."

According to the union, Hyundai Motor declined to put forward any proposal on wages or other issues, citing unresolved details on the company's side.

The union plans to file for dispute mediation with the National Labor Relations Commission on Monday, convene an emergency delegates' assembly on June 23 to set the direction of any strike action, and hold a strike authorization vote among all members around June 25.

A strike would become legally permissible if the commission determines that the gap between the two sides is too wide to bridge and issues a mediation suspension ruling, and if more than half of all union members vote in favor.

The union is demanding a monthly base pay increase of 149,600 won (about $98, excluding seniority raises), a performance bonus equal to 30 percent of last year's net profit, and guarantees on employment and working conditions related to AI.

The demands also include a full monthly salary system, a bonus increase from 750 percent to 800 percent, shorter working hours without intensified workloads, a retirement age extension tied to national pension eligibility — up to a maximum of 65 — and new hiring to fill staffing gaps.

Last year's negotiations were settled only after the union staged three rounds of partial strikes.


eyre@heraldcorp.com