Author: Heekyung Yang
SEOUL (Reuters) – Unionized Hyundai Motor workers in South Korea have voted in favor of a possible strike after talks with the company over wage increases and retirement age extensions stalled, the automaker’s union said on Monday.
The union, one of the largest in the country with more than 43,000 members, said nearly 90% of its members approved a strike if the company did not accept the union’s demands.
The strike would be the first such action in six years related to wage negotiations at the South Korean automaker and could disrupt domestic production of some popular cars that Hyundai exports to offset sluggish domestic sales.
“We are open to negotiations with management if they are willing to change their position,” a Hyundai Motor (OTC:) union official told Reuters, adding that the union plans to negotiate with management at the working level. Until mid-June, the union and management had held a total of eight rounds of wage negotiations.
Hyundai Motor declined to comment.
Analysts say it’s too early to say whether the union will actually go on strike this year, but if a strike does occur, it will inevitably impact Hyundai’s near-term sales, especially of popular cars sold in the United States. largest profitable market.
Analysts add that Hyundai Motor executives could use the automaker’s new U.S. plant, its largest investment outside South Korea, as leverage in negotiations because it could help reduce Hyundai’s dependence on domestic production.
The union is seeking an increase in the minimum basic monthly wage by 159,800 won ($115.14) and a performance-based payment equal to 30% of Hyundai’s net profit in 2023. It also calls for raising the retirement age from 60 to 64, as South Korea’s rising life expectancy and inadequate old-age benefits create pressure to be able to work longer.
“The Hyundai Motor Union has always voted for a strike every year, and this year is no exception, but the union may act a little tougher than in previous years because the company is doing well and the pandemic has long passed, so the workers will This time I would like to achieve better compensation,” said Chang Munsu, an analyst at Hyundai Motor Securities.
While production disruptions at Hyundai’s domestic plants will be inevitable, management will encourage workers not participating in the strike to work overtime to minimize the impact, Chung added.
($1 = 1,387.9200 won)