Hyundai Sues Labor Union for 1B Won

Hyundai Motors sued its labor union and its 26 union leaders for one billion won in damages on January 8. The one billion won claimed sum is the greatest amount that management has ever demanded against its labor union.

Hyundai claimed damages against its labor union for committing violence during the New Year’s opening ceremony and making delays in car production by resisting overtime work, which were part of its resistance to the management’s decision not to pay the year-end bonus because they failed to achieve its production goal.

Hyundai Motors said on January 7, “By taking the lead in refusing overtime work from December 28, labor union members caused severe damage to the company, while at the New Year’s opening ceremony held on January 3, they damaged properties at the event and committed violence against some managers. We plan to claim damages at the Ulsan District Court against the labor union and 26 union leaders including head of the labor union Park Yoo-gi.

Management said, “In fact, the damage would account to over 10 billion won if taking into account the direct damage caused by the illegal acts along with indirect damage such as its credit loss and defamation of the company’s image. Nonetheless, we will first sue the union leaders only for one billion won in damages.”

Hyundai Motor Company has sued its labor union nine times for illicit acts from the year 2000. The highest damage claimed was 0.3 billion won. Most of the lawsuits were canceled a few of months later. However, this case is expected to be different from previous ones. The management has been showing a hard line against the labor union by immediately taking legal action against the 22 union leaders on the next day of the violent disruption at the New Year’s ceremony. Hyundai management members, including vice president Kim Dong-jin and Chairman Yoon Yeo-chul proclaimed, “We will no longer display any conciliatory gestures for the union’s illegal activities.

Hyundai argued on January 7, due to the union’s refusal of overtime work, it failed to produce 7,752 cars, which caused a loss of 120 billion won.

Meanwhile, the labor union is expected to settle plans for further resistance such as going on strikes at its committee meeting at 1:00 p.m. January 8. On January 10, about 3000 strikers will come up to Seoul and gather for a large scale rally denouncing management in front of the Hyundai Motor headquarters in Yangjae-dong, Seocho-gu.

raks@donga.com