Hyundai Motor Co. Allows Labor Participation in Management

The prolonged labor dispute between Hyundai Motor`s labor and management, which has been dampening production for more than 40 days, is likely to come to an end, as both sides agreed on debated issues Tuesday.

However, the business community is strongly opposed to the agreement in which the automaker allowed labor participation in the management, one of the major demands from labor.

The two sides agreed that if a 40-hour work-week is enacted, the company will immediately introduce the system without lowering the standard for working conditions.

Prior to this, labor and management reached an agreement on the establishment of overseas plants. Labor representatives demanded Monday that the company guarantee retirement to present full-time workers at the age of 58, to not layoff or recommend retirement without consulting labor union due to sluggish sales and construction of overseas plants, to maintain the production of local plants at 2003 levels, and, finally, to not reduce or close local plants without consulting the labor-management committee.

Both sides decided to let the committee discuss the introduction of new machines and technology, development of new cars and improvement of the work process.

The company had earlier objected to the demands, claiming that they violate management rights. However, it reluctantly changed its position to accept labor’s demands as the government was considering taking emergency intervention measures before inventories run out due to the prolonged walkout.

Union workers are expected to cast a vote on the provisional agreement on Friday.

Meanwhile, the business community criticized the trade union, saying it forced the company to agree to their participation in management, creating an undesirable precedent.

Consulting labor unions regarding crucial business decisions, including the relocation of plants, mergers and acquisitions, and guarantees on retirement age, runs counter to the latest global trends, they pointed out. Business leaders are poised to seek countermeasures to keep such attempts at bay.

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