Bleak outlook for wage negotiation weighs on automakers

Hyundai Motor factory workers leave two hours earlier from work as part of a strike at its manufacturing facility in Ulsan in this July 12 file photo. Yonhap

By Lee Min-hyung

The outlook remains bleak for automakers to reach a timely compromise with labor unions in wage negotiations as unionized workers refuse to back down from partial strikes against what they claim to be an “unsatisfactory” salary increases offered by management.

Hyundai Motor's union decided to go on a partial strike for four hours on Sept. 13 and 14, after failing to reach a compromise in their wage increase talks. Hyundai's management and union held 21 rounds of talks, but laborers declined to accept offers from the company.

The union will decide whether to push for additional strikes unless the management accepts some of their demands on the extension of the retirement age and the reinstatement of laid-off workers.

The union demands a base salary increase of 184,900 won ($138), a 30-percent bonus out of the automaker's net profit last year and the retirement age extension to 64.

Kia's union is also urging management to increase their base salary to a similar level as Hyundai Motor. But it remains unclear whether management will accept the demand.

Other automakers are also facing a tough time in wage negotiations with their unions.

Renault Korea Motors is showing few signs of reaching a consensus in its negotiation with workers. In July, both sides reached a tentative agreement in their wage negotiation deal. However, some union members fiercely opposed the offer by the company.

GM Korea's union also plans to stage a protest for three days from Sept. 11 after failing to reach a consensus despite 17 rounds of wage negotiations. The union urged the management to offer an incentive of 18 million won and a series of other financial benefits to workers due to its turnaround last year.