Hyundai Motor union to halt Saturday operation as negotiations fail

The unionized workers of Hyundai Motor hold an assembly on Aug. 23 after the negotiation with the management fell out. [HYUNDAI MOTOR WORKERS UNION]

Unionized workers at Hyundai Motor decided to refuse work on Saturdays from Sept. 4 as they took industrial action amid an impasse in negotiation over wages and the extension of the retirement age.

The latest decision was made on Thursday following the labor union’s previous announcement on Aug. 18 that talks with the company’s management, which began in June, fizzled due to disagreement in this year’s employment conditions.

In a vote held on Aug. 25, 91.8 percent of 43,166 labor union members who turned out voted in favor of launching a collective action. However, negotiations will resume on Friday at the management's request.

The union is likely to launch a strike if the negotiation breaks down again.

If the union stages a walkout due to a fallout during the collective bargaining process this year, it would be its first since 2018.

The union requested a base monthly pay raise of 184,900 won ($140) and 30 percent of last year’s net profit as incentives.

The biggest point of contention between the union and the management is the retirement age, as the union requested an extension of the retirement age from the current 60 to 64, which is the age when they begin to receive state pension benefits.

Posco and HD Hyundai Heavy Industries could also face similar collective actions from their unionized workers as negotiations continue to be stalled in a deadlock.

The biggest labor union at Posco, Korea’s largest steelmaker, announced that talks with its management have failed despite 20 rounds of negotiations. The unionized workers put forward 23 demands including a 13.1 percent pay rise in base monthly salary, of which the management accepted only 5.

It is the steelmaker’s first-ever negotiation failure in collective bargaining since the company was founded in 1968.

Posco’s labor union will hold a ballot to decide whether to take collective action against the company’s management.

The unionized workers of HD Hyundai Heavy Industries plan to stage a partial walkout for three hours on Friday, after the tentative agreement that included a 120,000 won pay rise and incentive handouts was rejected by 68.8 percent in voting by union members.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]