Unions from Hyundai Motor Group's affiliates have initiated a joint action for the first time in history. Discussions are underway among 38 major unions, including those from Hyundai Motor, Kia, Hyundai Mobis, Hyundai Steel, and Hyundai Glovis. The total membership of these unions is approximately 87,000, raising the possibility of a large-scale collective action involving nearly 90,000 members depending on the outcome of future discussions.
The unions plan to discuss specific strategies in a meeting scheduled for early next month. The significance of this movement is substantial, as it represents the first instance of collective bargaining and joint action encompassing both primary contractors and affiliates since the implementation of the so-called Yellow Envelope Law in March.
Hyundai Motor Group is a symbol of South Korean manufacturing. The automotive industry is interconnected with numerous sectors, including steel, parts, logistics, semiconductors, and batteries. Disruptions in Hyundai Motor Group's production lines can significantly impact not only its suppliers and local economies but also the national economy. This issue is garnering attention as it transcends mere labor disputes and touches upon the competitiveness of our industry.
In recent years, Hyundai Motor Group has achieved record-high performance. Amid the industry's transition to electrification and the rise of artificial intelligence (AI), workers are expressing concerns about job security. The unions are raising issues regarding retirement age extension, reduced working hours, and changes in employment due to AI implementation.
However, it is essential to view the reality with a clear perspective. The global automotive industry is undergoing a significant transformation not seen in a century. Chinese electric vehicle companies are growing at an alarming rate, and American and European firms are fiercely competing in the future vehicle market. Notably, Chinese companies are gaining ground in the global market by leveraging both price competitiveness and technological prowess.
In this context, the greatest threat to our automotive industry is the weakening of competitiveness due to internal conflicts. Hyundai Motor Group cannot rest on its current successes, and labor unions should not base their future judgments solely on present achievements. In today's global market, competition is not between individuals but between companies and nations.
The automotive industry is rapidly evolving into one centered around AI and software. Autonomous driving, robotics, software-defined vehicles (SDVs), and battery technology will determine future competitiveness. Maintaining the employment structure and production methods of the internal combustion engine era is no longer feasible. It has become increasingly important for labor and management to collaboratively create new jobs and adapt to new technologies.
Concerns are also rising about increased uncertainty in the industrial sector following the implementation of the Yellow Envelope Law. While protecting workers' rights is crucial, it should not stifle corporate management activities and investment enthusiasm. The intent of the law should be respected, but complementary measures to minimize disruption in the industrial sector must also be established.
Above all, what is needed is dialogue, not confrontation. While unions may use strikes as a negotiating tool, it should not become their primary objective. Companies should share successes during prosperous times and present a vision for future employment. A labor-management relationship devoid of trust ultimately leads to losses for all parties involved.
The South Korean economy faces significant challenges, including low growth, an aging population, and the restructuring of global supply chains. If manufacturing competitiveness falters, the entire national economy will inevitably suffer. Both labor and management at Hyundai Motor Group must recognize the profound impact their decisions will have on the broader South Korean industry.
The fundamentals, principles, and common sense are surprisingly simple. Companies must maintain competitiveness to create sustainable jobs, and workers need stable employment to plan for the future. The labor-management relationship is ultimately about coexistence. It is essential to seek paths for mutual survival rather than victories for one side.
The choices made by labor and management at Hyundai Motor Group are not merely issues for a single company; they are directly linked to the future of South Korean manufacturing. Both sides must demonstrate the wisdom to look beyond immediate interests and consider the industry's competitiveness in 10 or 20 years. What is needed now is not an escalation of conflict but a shared solution for the future.
* This article has been translated by AI.
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