Wage negotiations collapse between Hyundai Motor and its union

Industry

Published: 13 Jun. 2024, 19:26 Updated: 13 Jun. 2024, 19:30

Wage negotiations collapse between Hyundai Motor and its union

This file photo provided by Hyundai Motor shows the company's management and union leaders at wage negotiation talks in the southeastern city of Ulsan on May 23, 2024. [YONHAP]

Wage negotiations between Hyundai Motor, Korea's leading automaker, and its union have collapsed, union representatives said Thursday, with workers expected to vote later this month whether to stage a walkout.

The union decided to call off further negotiations after holding the eighth round of talks at the company's plant in Ulsan, earlier in the day.

The management reportedly offered to provide a basic monthly salary increase of 101,000 won ($73.50) and an additional bonus package, which includes an incentive of 350 percent in individual monthly salary, as well as the issuance of 20 shares of company stock.

The company also offered to create a joint management-union fund to be used for donations and other public outreach programs.

The union concluded that the proposal failed to meet expectations and walked out of the negotiations.

The union plans to file for mediation with the National Labor Relations Commission. It is also expected to conduct a vote on June 24 on whether to stage a walkout.

Hyundai Motor's union has not carried out a strike in the past five years, taking into consideration various factors, such as the COVID-19 pandemic and national trade issues, including a row with Japan during the previous government.

Yonhap