The South Korean Union at Hyundai Motor Goes on Strike for the First Time in Ten Years Over Wages
Hyundai Motor’s (005380.KS) opens new tab The South Korean union, seeking a higher retirement age and employment protections against automation and artificial intelligence, mounted its first complete walkout in ten years on Friday after salary negotiations stagnated.
Wearing red headbands and chanting demands such as raising the retirement age from the current 60 and permitting parts suppliers to raise prices, striking employees of Hyundai Motor, affiliate Kia Corp (000270.KS), and suppliers staged a protest outside Hyundai Motor’s headquarters in Seoul.
From a podium at the rally, Hyundai union leader Lee Jong Cheol stated, “The key figures who made Hyundai and Kia the world’s strongest company for 35 or 40 years are now being pushed into contract positions.”
A union official stated earlier on Friday that between 1,200 and 1,300 union members are scheduled to attend the rally in Seoul, and about 40,000 Hyundai Motor union members are anticipated to participate in the strike on Friday.
The official further stated that members of other unions and those connected to the umbrella union were spotted joining, increasing the anticipated number of people attending the rally in the capital to roughly 3,000.
Following the election of pro-labor liberal President Lee Jae Myung last year, labor dissatisfaction in South Korea has grown, as evidenced by the one-day walkout.
According to estimates from Yonhap News Agency, production of 55,200 automobiles valued at over 2.3 trillion won ($1.67 billion) has been hampered by a series of partial walkouts since late July.
The manufacturer, which in July stated it anticipated missing its global sales target this year due to increased Chinese competition in Europe and declining sales in South Korea, is experiencing further difficulties as a result of the labor action.
President Lee’s promise to progressively raise the cap in one of the fastest-aging nations in the world is consistent with the union’s demand to raise the obligatory retirement age.
In addition, the union wants incentives to go from 750% to 800% of basic pay each month. They have also requested assurances that jobs will be protected while the corporation implements robotics and artificial intelligence.