By Heekyong Yang
SEOUL (Reuters) – Unionized workers at Hyundai Motor in South Korea voted in favor of a possible strike after talks with the company over pay increases and an extension of the retirement age stalled, the union said on Monday. Automobile manufacturer.
The union, one of the largest in the country with more than 43,000 members, said almost 90% of its members had approved the strike unless the company accepted the union’s demands.
A strike would mark the first such action in six years related to wage negotiations at the South Korean automaker and could disrupt production of some popular vehicles in the country, which Hyundai has been exporting to offset weak domestic sales. .
“We are open to holding negotiations with management if they are willing to change their stance,” a union leader at Hyundai Motor (OTC:) told Reuters, adding that the union plans to hold work-level talks with management. The union and management held a total of eight rounds of wage negotiations through mid-June.
Hyundai Motor declined to comment.
Analysts said it is still too early to say whether the union will actually launch a strike this year, but if a strike goes ahead it would inevitably impact Hyundai’s short-term sales, especially for popular cars sold in the United States. largest income generating market.
Analysts added that Hyundai Motor’s management could use the automaker’s new US plant, its largest investment outside South Korea, as negotiating leverage because it could help reduce Hyundai’s dependence on domestic production.
The union seeks an increase in the monthly minimum basic wage to 159,800 won ($115.14) and performance pay equal to 30% of Hyundai’s net profits in 2023. It also demands an increase in the retirement age from 60 to 64. years, as South Korea’s rising life expectancy and inadequate retirement pension payments drive demands to be able to work longer.
“Hyundai Motor’s local union has always voted to strike every year and this year is no different; however, the union might push a little harder than in previous years as the company has been doing well and The pandemic is long over, so workers “would like to push for higher compensation this time,” said Chang Moonsu, an analyst at Hyundai Motor Securities.
While production disruptions at Hyundai’s domestic factories would be inevitable, management would encourage workers not participating in the strike to work overtime to minimize the impact, Chang added.
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