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After two months of negotiations with the firm over a pay rise and an extension of the retirement age stalled last week, Hyundai Motor’s unionized workers in South Korea will vote on holding a walkout on Friday.
If the union strikes, it would be the first strike related to pay discussions at the South Korean automaker in five years, and it would prevent Hyundai from delivering several well-liked automobiles because of protracted component shortages.
With around 40,000 members, the union, one of the largest in the nation, is requesting a minimum basic wage raise of 184,900 won ($139) per month as well as performance pay equal to 30% of Hyundai’s 2022 net profit. Also, it is requesting that management at Hyundai boost the retirement age from 60 to 64.
According to a union representative at Hyundai Motor, the voting results are anticipated at around 6 p.m. (0900 GMT), and regardless of the outcome, the union will continue working-level conversations with the management.
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Workers’ Rights
Reuters’ request for comment was not immediately answered by Hyundai Motor.
As pointed out by experts, South Korea’s poorer social safety net, including retirement pensions, and increased life expectancy have contributed to workers’ calls for a higher retirement age.
In comparison to other developed nations in Europe, South Korea has comparatively low pension replacement rates, according to Park Ji-soon, a social security law expert at Korea University’s School of Law.
Hyundai unionized employees in South Korea participated in a four-hour walkout on one day in July in support of the general strike of the umbrella union, but it had nothing to do with the union’s wage discussions with the company’s management.
Due in part to unfavorable public opinion and the fact that the auto industry is one of the few bright spots in the sluggish economy of the country, analysts predicted that the union would likely avoid extended industrial action.
As of 0234 GMT, shares of Hyundai Motor were down 0.1%, compared to a 0.6% decline in the benchmark KOSPI.
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Source: Reuters
