By Lee Hyo-sik
The union at Hyundai Heavy Industries (HHI) faces a backlash for its plan to stage an anti-election campaign against the shipbuilder’s majority stakeholder, Chung Mong-joon, who is running to become the next FIFA president.
HHI unionized workers have threatened to organize a rally against the former FIFA vice president, who holds a 10.15 percent stake in the world’s largest shipbuilder, in Switzerland where the election will be held in October.
The move is seen as one of the most controversial steps ever taken by the union to press management to accept its demands.
The union is demanding that management increase workers’ base salary by 127,560 won, or 6.77 percent, and pay a 250 percent annual performance bonus, among others.
However, management is asking the union to accept a wage freeze, given the shipbuilder’s recent dismal performance. In 2014, Hyundai Heavy posted a 3.25 trillion won operating loss, the largest in its history. In the second quarter, it lost 171 billion won.
HHI officials and industry watchers are chiding the union, saying this is not the time for workers to stage a walkout when their companies are losing huge amounts of money on falling orders and unprofitable projects.
They say unionized workers should refrain from making “excessive” demands and instead work together with management to overcome the current difficulties.
“Hyundai Heavy is run by professional managers, not by Chung or any other majority stakeholders. It is nonsense for the union to get Chung involved in the firm’s collective bargaining,” an HHI spokesman said. “Now is the time for both labor and management to join hands together and work hard to get the company back on track.”
An executive at one of the country’s major business associations blamed unionized workers, saying that if they rally against Chung abroad, it will invite strong public backlash.
“I really hope that Hyundai Heavy workers do not hold an anti-Chung campaign. If they do, it will be a huge embarrassment for the entire country,” the executive said. “The workers should instead play their part in helping the shipbuilder ride out unfavorable business conditions, rather than further drive it to the corner.
Despite the growing criticism against the union’s planned protest against Chung, unionized workers are vowing to ruin Chung’s FIFA election campaign to press company management to accept its demands.
“We will send three senior union leaders to Zurich where FIFA headquarters are located from Oct. 18 to 24 to organize an anti-Chung campaign,” HHI union policy director Kim Hyung-gyun said. “We have no other choice but to do so in order to complete wage negotiations before the Chuseok holiday, which begins on Sept. 26.”
The union plans to hold a press conference with international labor groups in the Swiss capital to denounce the shipbuilder’s management practices and Chung’s bid for FIFA’s top post. It is also considering organizing a street rally in front of FIFA headquarters.
“If management is willing to talk to us and approve our demands, we will then cancel dispatching our members to the Switzerland. The ball lies in the company’s court,” Kim said.