By Heekyong Yang
SEOUL (Reuters) -Hyundai Motor’s unionised employees in South Korea voted for potential strike motion after talks with the corporate over wage will increase and an extension of the retirement age stalled, the automaker’s union mentioned on Monday.
The union, one of many greatest within the nation with greater than 43,000 members, mentioned that nearly 90% of its members had authorised strike motion except the corporate accepts the union’s calls for.
A strike would mark the primary such motion in six years associated to wage negotiations on the South Korean carmaker and will disrupt manufacturing of some common autos at house, which Hyundai has been exporting to offset its sluggish home gross sales.
“We’re open to have negotiations with the administration if they’re prepared to vary their stance,” a Hyundai Motor (OTC:) union official informed Reuters, including that the union plans to hold out working-level talks with the administration. The union and the administration had a complete of eight rounds of wage negotiations as much as mid-June.
Hyundai Motor declined to remark.
Analysts mentioned it’s nonetheless too early to inform whether or not or not the union would truly launch a strike this 12 months, but when a strike takes place it could inevitably influence Hyundai’s short-term gross sales, particularly for the favored automobiles offered in the USA, Hyundai’s greatest revenue-generating market.
Analysts added that Hyundai Motor’s administration might use the automaker’s new U.S. plant, its largest funding exterior South Korea, as bargaining leverage as a result of it might assist cut back Hyundai’s dependence on home manufacturing.
The union is looking for a minimal primary month-to-month pay improve of 159,800 received ($115.14) and efficiency pay equating to 30% of Hyundai’s 2023 web revenue. It is usually demanding a rise within the retirement age to 64 from 60, as South Korea’s rising life expectancy and insufficient retirement pension funds immediate calls for to have the ability to work for longer.
“Hyundai Motor’s union at house has at all times voted for strike motion yearly and this 12 months isn’t any completely different, nonetheless, the union may push a bit tougher than earlier years as the corporate has been doing properly and the pandemic is lengthy gone, so employees wish to push for greater compensation this time,” mentioned Chang Moonsu, an analyst at Hyundai Motor Securities.
Whereas manufacturing disruptions at Hyundai’s home factories could be inevitable, administration would encourage employees not collaborating within the strike to work extra time to attenuate the influence, Chang added.
($1 = 1,387.9200 received)
