Labor disputes are intensifying in key manufacturing sectors, including automotive, semiconductor, and steel, indicating a prolonged period of strikes. The Hyundai Motor Company union announced a full strike on August 21, following a series of partial strikes, while the Kia union is also ramping up pressure on management after securing the right to strike. SK Hynix continues negotiations over wages and bonuses, and the Posco union faces its first strike threat in 58 years.
According to industry reports, the Hyundai union has been conducting partial strikes of four hours each on August 19 and 20. A full eight-hour strike is scheduled for August 21, with additional partial strikes planned for August 24 and 25. This marks the first full strike by the Hyundai union since collective bargaining began in 2016.
Notably, the nationwide metalworkers' union is also participating in the strike. Approximately 90,000 workers, including Hyundai employees, parts suppliers, and affiliates, are expected to join in solidarity, potentially halting production lines entirely. Given the production disruptions already caused by previous strikes and the upcoming schedule, Hyundai's production losses are estimated at 60,000 vehicles, with financial losses projected at 2.6 trillion won.
The main points of contention between Hyundai management and the union include demands for the reinstatement of dismissed workers, a 50% increase in bonuses, and an extension of the retirement age. The metalworkers' union is also advocating for securing primary negotiations, halting price cuts from parts suppliers, and extending the retirement age within the Hyundai Group. A representative from the Hyundai and Kia unions stated, "The company has reported record profits but is unfairly distributing rewards only to executives, ignoring the hard work of union members. We strongly condemn management's behavior of celebrating bonuses while neglecting our members' contributions."
The semiconductor industry is also at a critical juncture following disputes over bonus distribution. SK Hynix's management and union reached a tentative agreement to distribute 60% of the excess profit-sharing bonus in company stock and 40% in cash, breaking from the previous principle of full cash payment.
However, tensions remain. Internal dissatisfaction with management's proposal has led to the formation of a new "integrated union" that encompasses both production and technical staff, indicating potential conflicts within the labor force. As this agreement is still tentative, it awaits a vote from union members, raising questions about whether it can overcome internal dissent amid the ongoing labor strife.
In the steel and shipbuilding sectors, labor disputes over wages and collective agreements are escalating, raising the specter of strikes. Posco secured legal grounds for a strike following a decision by the Central Labor Relations Commission to halt mediation on August 18, putting its 58-year history of no strikes at risk.
Since wage negotiations began in June, Posco's management and union have held six rounds of talks but have failed to reach an agreement due to differing positions on wage increases and bonuses. The union is demanding a 7.1% increase in base salary and a 600% bonus, while management has proposed a 1.5% increase in base salary and a bonus of 2.5 million won.
The shipbuilding industry, currently experiencing a boom, is also facing heightened tensions over wage negotiations. The HD Hyundai Heavy Industries union applied for labor dispute mediation with the Central Labor Relations Commission on August 14 and plans to hold a vote on strike action from August 25 to 27. The two sides are at odds over base salary increases, expanded bonuses, and sharing 30% of operating profits.
Hanwha Ocean is also encountering difficulties in its wage negotiations, having held 15 rounds of talks since June without narrowing the gap between the two sides. The uncertainty in labor relations is further complicated by issues surrounding direct negotiations between subcontractor unions and primary contractors due to the implementation of revised labor laws.
* This article has been translated by AI.
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