Labor unrest at Hyundai examined

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Labor unrest at Hyundai examined

A huge sign at a Hyundai Motor seminar in Seoul yesterday summed things up pretty well: “If we continue in this fashion, Hyundai Motor will die.” The seminar was designed to improve labor-management relations.
Hyundai has been hurt by ongoing labor unrest.
A committee called the labor-management development movement was formed on Jan. 23 to establish labor-management relationships based on negotiation and compromise. The committee is led by Chung-Ang University professor Kim Dae-mo and former deputy minister Choi Seung-boo of the Labor Ministry.
The labor union’s “whiny” strike style is a problem, but a company that allows strikes to happen repeatedly is also largely responsible, the committee said.
“Hyundai Motor is the only company in the world where there are illegal strikes despite the fact that the company raises wages by 7 to 9 percent every year,” said Park Gun-woo, former chairman of Toyota Korea.
“Hyundai must employ professional management from outside because confidence to deal with the union’s illegal acts comes from logical and transparent management.”
Shim Kab-bo, vice chairman of the Korea Employers Federation, said Hyundai Motor was following the bad precedent of General Motors, which “lost its path” due to frequent strikes.
He said the biggest barrier for firms in attracting foreign capital was a strong labor union.
He said firms should not compromise or give the labor union “back money” to block imminent strikes.
Mr. Shim said the government should punish both labor and management in certain cases.


By Moon Byung-joo JoongAng Ilbo [wohn@joongang.co.kr]
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