Hyundai Labor Dispute Could Linger

The chief of the Hyundai labor union Park Yoo-ki said in a press conference on January 9, “If the company does not pay an additional 50% bonus until January 11, we will call a union representative meeting on January 12 to decide to stage a strike.” He added, “If we vote for a strike, we will form a working team to go on strike the following week.”

The union filed a lawsuit against the company with the Ulsan branch of the Busan Labor Office, saying, “The company did not pay incentive pay agreed on last year.” The union says the company is in breach of labor law on collective bargaining.

In response to the suggestion from the Korean Confederation of Labor Unions that the union apologize for blocking the opening ceremony for the year, the union said “At this point, it is undesirable to make an apology.”

In the same day at 5:30 p.m. in front of the Hyundai plant in Ulsan, the militant union called a meeting for all members designed to force the company to pay the bonus. Some 500 unionized members have been staging an overnight sit-down strike since January 8 in a square in front of the plant.

The union has decided to send busloads of its members at 7:00 a.m. on January 10 to Seoul for demonstrations. It said that at least 1900 members (400 union representatives and 1500 rank and file) have to be sent to Seoul. Taking part in demonstrations in Seoul, members from Ulsan will take a day’s leave of absence, and ones from Jeonju, Asan, and the Seoul metropolitan area will leave work early.

In a radio interview, president of Hyundai Yoon Yeo-cheol said “As of now, the year-end bonus is not something for negotiations. If we cannot put an end to the Union’s illegal practice now, our company will have no future. The company will not drop the lawsuit and complaint filed against the union.”

Regarding the demand for negotiation from the union, he said, “Even though the incentive pay is not something for bargaining, the company will come to the negotiating table provide it is informal.” The union’s refusal to work overtime or on holidays from December 28 last year to January 9 cost the company 141.8 billon won or 9,306 cars and each employee 1 million won in lost wages.

raks@donga.com