Both sides at Hyundai hoping a strike can be avoided today

Experts said that for only the second time since 1987, it is possible that Hyundai Motor’s unionized workers will decide today not to strike this year ― even as their demands made yesterday included being involved in management decisions.
“Hyundai’s management will do its best to narrow gaps with the union until the last minute,” said Kim Jeong-han, a research fellow at the Korea Labor Institute, who said he believes a strike is unlikely because it would deal the automaker yet another harsh blow.
“Hyundai-Kia Motor Group Chairman Chung Mong-koo’s appeal trial is scheduled Sept. 6,” he said, “and the Fair Trade Commission is gearing up to slap tens of billions of won [millions of dollars] in fines for improper internal trades.”
If the union votes today in favor of a strike, the walkout could begin early next week. Experts said the two sides are working hard to close their differences, even though a 10th round of negotiations was disrupted Friday.
The union’s basic demands include an 8.9 percent monthly salary increase, incentives worth 30 percent of the company’s annual net profit for the fiscal year and the extension of the retirement age from the current 58 to 60.
In addition, the union newly proposed yesterday that if the carmaker develops a new vehicle model, engine or transmission, management should discuss the production site and the volume it intends to make with the union.
In addition, if the workload at Hyundai’s domestic factories decreases due to the relocation of production to overseas sites, the company should move the work back to Korea, said Chang Kyu-ho, a spokesman for the labor union.
He cited the example of the compact model Click, whose entire production line was moved to a Hyundai factory in India in June mainly due to lower domestic demand.
“Workers at the Ulsan 1 plant [the former Click factory] are now working fewer hours and earning less money,” he said. “What if domestic plants lose competitiveness to the point where they are forced to shut down in the future? Do we just let it go? The domestic auto industry and the related industrial partners employ at least 5 million people.”
He said, however, the union hopes a strike can be avoided.
The union brought the industrial action to Korea’s Labor Committee, as labor laws mandate that a union must report any labor dispute to the committee at least 10 days before a strike.

By Seo Ji-eun Staff Writer [spring@joongang.co.kr]