The Hyundai Motor (005380.KS) union, the Hyundai Motor branch of the Korean Metal Workers' Union, filed for labor dispute mediation with the National Labor Relations Commission on Tuesday. The move marks the beginning of strike procedures, about 40 days after labor and management held their first wage negotiation meeting at the Ulsan plant on May 6.
Filing for labor dispute mediation with the National Labor Relations Commission is a procedure to secure the right to strike. After the commission goes through a mediation period of about 10 to 20 days, if it determines that labor and management are unlikely to narrow their differences and decides to halt mediation, the union gains the right to stage a legal strike with the approval of more than half of all members. The Hyundai Motor union plans to follow strike procedures by holding an extraordinary delegates' meeting on the 23rd and a strike vote for all members on the 25th.
Earlier, the Hyundai Motor union declared the wage negotiations had broken down after concluding the 11th round of talks at the main building of the Ulsan plant on the 12th. The union cited the reason for the breakdown, saying, "Management has repeatedly said only that it is 'difficult,' without presenting a proposal including wages."
This year, the Hyundai Motor union is demanding a monthly base pay increase of 149,600 won (excluding step increases), payment of 30% of last year's net profit as performance pay, and an increase in bonuses from 750% to 800%. It is also calling for employment and labor condition guarantees in response to the introduction of humanoid robots, the implementation of a full monthly salary system, a reduction in working hours without increased labor intensity, and an extension of the retirement age to 65.
Management has countered that the base pay increase and performance pay demands are excessive. On the retirement age extension, it takes the position that the timing of its introduction should be discussed after it is enacted into law.
Last year, the Hyundai Motor union also secured the right to strike through procedures including labor dispute mediation with the National Labor Relations Commission, and staged three partial strikes.
At that time, labor and management reached a collective bargaining agreement, agreeing on a monthly base pay increase of 100,000 won (including step increases), performance pay of 450% plus 15.8 million won, 30 shares of stock, and 200,000 won in traditional market gift certificates.
