Hyundai Motor workers to begin 3-day partial strike after wage negotiations break down

Unionized Hyundai Motor workers will stage a three-day partial strike starting Monday after wage negotiations with management fell through.

The automaker is set to face strikes for the second consecutive year, with production stoppages expected to cause substantial losses.

The strike will suspend production lines for two hours each day from Monday through Wednesday before the end of each shift, according to the Korean Metal Workers’ Union at Hyundai Motor.

Employees in sales, maintenance, the Namyang R&D Center and the labor organization Mobis committee will determine the extent of their participation based on conditions at each workplace.

Industry sources estimate that the strike could disrupt more than 18.7 billion won ($12.5 million) in vehicle production per hour.

The union is also stepping up pressure on management beyond the strike itself.

Union delegates and senior members from the labor side will begin an overnight sit-in on Monday. All labor-management consultations except collective bargaining sessions will be suspended. The union is also maintaining its refusal to work weekend overtime, a directive that has been in place since July 6.

The strike came after the 15th round of wage negotiations last Wednesday ended without an agreement.

During the talks, the management proposed its third offer, which included an increase of 89,000 won in base pay, a performance bonus equivalent to 350 percent of monthly salary plus 10 million won, and 15 shares of company stock.

The union rejected the proposal and finalized its strike schedule.

The union is demanding a 149,600-won increase in base pay, excluding regular seniority raises, an 800 percent bonus increase, an extension of the retirement age and the reinstatement of dismissed workers. It is also urging the company to allocate 30 percent of its previous year's net profit to employees’ performance incentives.

"The only things strikes have brought in the past were production losses, lost wages and public criticism," Choi Yeong-il, executive vice president of Hyundai Motor, said in a statement that urged employees to return to work. 

"There has never been a case in which a strike led the company to make an additional offer or compensate workers for wages lost during the walkout." 

The union plans to convene its third meeting of the central dispute countermeasures committee on Thursday to decide whether to escalate or modify its labor action.

BY KO SEUNG-PYO [[email protected]]