SEOUL, July 9 (AJP) - Unionized workers at Hyundai Motor are expected to stage a three-day partial strike next week unless they reach a deal in ongoing wage negotiations.
The union on Wednesday voted to hold a two-hour strike each day from next Monday through Wednesday before joining a nationwide general strike led by the Korean Metal Workers' Union on the final day.
The move came after the collapse of their 15th round of talks earlier in the day, during which the company presented a revised proposal that included an 89,000-won increase in base pay, a bonus worth 350 percent of monthly pay plus 10 million won, and 15 shares of company stock. But the union turned down the offer as insufficient.
Both sides, however, said they would continue negotiations, leaving open the possibility that the strike could be called off if further talks lead to a deal.
In a statement, the union said, "Management has failed to make a responsible decision on our core demands, and its revised wage offer also fell short of our expectations," vowing to proceed with the planned strike.
Hyundai expressed regret over the union's decision and called for continued negotiations to "reach a reasonable outcome that allows labor and management to coexist."
Key sticking points in the talks are the size of wage increases and expanded compensation including bonuses. Hyundai says it is difficult to take on additional costs given last year's decline in operating profit and weak sales in the first half of this year.
The union argues that real wages must rise to reflect inflation, seeking a 149,600-won increase in base pay, performance pay equivalent to 30 percent of the previous year's net profit, and bonuses worth 800 percent of monthly pay. It is also calling for the retirement age to be extended and for workers fired over past labor disputes to be reinstated.
But the two sides have made some progress on several other issues, agreeing to work together to ensure job security in the rapidly changing era of artificial intelligence and improve working conditions. They also agreed to set up a joint task force to continue discussions on reducing working hours.
If the strike goes ahead as planned, Hyundai would face labor action for a second consecutive year. Whether the two sides can narrow their differences over wage increases and bonuses will be the key factor in reaching an agreement.
The union on Wednesday voted to hold a two-hour strike each day from next Monday through Wednesday before joining a nationwide general strike led by the Korean Metal Workers' Union on the final day.
The move came after the collapse of their 15th round of talks earlier in the day, during which the company presented a revised proposal that included an 89,000-won increase in base pay, a bonus worth 350 percent of monthly pay plus 10 million won, and 15 shares of company stock. But the union turned down the offer as insufficient.
Both sides, however, said they would continue negotiations, leaving open the possibility that the strike could be called off if further talks lead to a deal.
In a statement, the union said, "Management has failed to make a responsible decision on our core demands, and its revised wage offer also fell short of our expectations," vowing to proceed with the planned strike.
Hyundai expressed regret over the union's decision and called for continued negotiations to "reach a reasonable outcome that allows labor and management to coexist."
Key sticking points in the talks are the size of wage increases and expanded compensation including bonuses. Hyundai says it is difficult to take on additional costs given last year's decline in operating profit and weak sales in the first half of this year.
The union argues that real wages must rise to reflect inflation, seeking a 149,600-won increase in base pay, performance pay equivalent to 30 percent of the previous year's net profit, and bonuses worth 800 percent of monthly pay. It is also calling for the retirement age to be extended and for workers fired over past labor disputes to be reinstated.
But the two sides have made some progress on several other issues, agreeing to work together to ensure job security in the rapidly changing era of artificial intelligence and improve working conditions. They also agreed to set up a joint task force to continue discussions on reducing working hours.
If the strike goes ahead as planned, Hyundai would face labor action for a second consecutive year. Whether the two sides can narrow their differences over wage increases and bonuses will be the key factor in reaching an agreement.
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