Hyundai Motor (005380.KS) CEO Choi Young-il expressed deep regret over the labor union's move toward a strike, saying the company must not take an irreversible path, in a statement to employees on the 10th.
"On the 8th, the company presented its best proposals on virtually all of this year's bargaining agenda items to reach an amicable conclusion to negotiations," Choi said in the statement. "This was the company's decision to meet customer expectations at a time when we are seeking an earnings turnaround through new vehicle launches in the second half."
He pointed out that the union is nonetheless heading toward a strike on the grounds that there has been no answer on the "reinstatement of dismissed workers" and "retirement age extension." Choi made clear that the company cannot make a decision on these two issues.
Regarding the demand for reinstatement of dismissed workers, he drew a line, saying, "There is no basis to discuss reinstating workers whose dismissals were ruled justified. We have clearly confirmed through legal grounds and the National Labor Relations Commission's mediation meeting that this is not a subject for labor-management negotiations."
On the retirement age extension, he stressed, "At a time when discussions on legislation are fiercely underway in the political sphere, individual companies' labor and management cannot reach a conclusion first." He added, "Just 10 months ago, we agreed in collective bargaining to 'discuss after legislation,' and the validity period of the collective agreement must be observed."
Finally, Choi warned, "A strike is the union's choice, but the damage and losses are borne by all of us. What was gained from past strikes was only irreversible production losses and wage damage, and there has never been a case of offering more or compensating because of a strike."
Noting that the company has made decisions on virtually all of the separate demands aside from the unacceptable agenda items and has also drawn up an agreed-upon proposal, he repeatedly urged employees to make a wise decision for Hyundai Motor's future.
The Hyundai Motor union plans to hold two-hour strikes each day from the 13th to the 15th following difficulties in this year's wage negotiations.
