Hyundai Motor's (005380.KS) labor union declared a breakdown in this year's wage negotiations. Having confirmed the gap with management, the union plans to proceed with strike procedures.
After concluding the 11th round of negotiations held at the main building of the Ulsan plant Thursday, the Hyundai Motor union formalized the "breakdown in wage talks," saying, "Management has only repeated that things are difficult and has failed to present a proposal including wages."
The union plans to file for labor dispute mediation with the National Labor Relations Commission on June 15, hold a special delegates' convention on June 23, and conduct a strike vote among all union members on June 25 before launching a strike.
If the National Labor Relations Commission determines that it would be difficult to narrow the gap between labor and management and issues a decision to suspend mediation, the union can legally strike if more than half of all union members vote in favor in the strike ballot.
The Hyundai Motor union is demanding a monthly base pay increase of 149,600 won (excluding seniority-based step increases), payment of 30% of last year's net profit as performance bonuses, and an increase in bonuses from 750% to 800%.
The demands also include employment and labor condition guarantees in response to the introduction of humanoid robots, implementation of a full monthly salary system, reduction in working hours without intensifying labor, and extension of the retirement age to 65.
Hyundai Motor's labor and management previously reached a wage and collective bargaining agreement last year after the union staged three partial strikes.
The two sides agreed to a monthly base pay increase of 100,000 won (including seniority-based step increases), a performance bonus of 450% plus 15.8 million won, 30 shares of stock, and 200,000 won in traditional market gift certificates.
