Unionized Workers Of Hyundai Motor Goes On A Partial Strike After Failing To Reach A Wage Agreemeent With The Company
The South Korean leading automaker Hyundai Motor failed to reach a wage agreement with its unionized workers leading to a four-hour partial strike from the morning shift at 6:50 a.m. and another at 3:30 p.m. from the afternoon shift at the Ulsan plant in South Gyeongsang, Jeonju pant in North Jeolla and Asan plant in South Chungcheong.
The management and the workers held a twenty ninth negotiation on Tuesday at the Ulsan plant joined by Hyundai Motor President Yoon Gap Han and union leader Lee Kyung Hoon, but both sides could not agree on the issue at hand, including the so-called peak wage system, which extends South Korea's retirement age from 58 to 60, but gradually reduces the salary of workers nearing their retirement age.
The union fights for alternative means that compensates the salary deduction of aging workers.
"The labor union needs to reconsider accepting the peak wage system that has been adopted nationwide recently to resolve the low employment problem for youth," explained Yoon.
The annual negotiations on wage issues have resulted to four consecutive years of strikes from Hyundai workers. The union declared two six-hour strikes on Thursday at 8:50 a.m. and 5:30 p.m., with the morning shift holding another strike on Friday, in all three Hyundai Motor plants, reported Korea JoongAng Daily on Thursday.
On Oct. 1, the union is set to hold a meeting regarding further strikes against the automaker company.
Meanwhile, Wards Auto reported on Monday the so-called peak wage system would help reduce the labor costs of companies and promotes hiring of workers who are younger as the productivity of older workers tend to decrease as they age.
The Hyundai Motor Group, including Hyundai, Kia and over 40 other Hyundai affiliates released a statement that the company will follow the peak wage system starting 2016.
"We will push to increase young workers' employment by hiring 1,000 more annually," said the group. "The decision to implement the peak-wage system and expand young adults' employment was made to fulfill our social responsibility of improving job security and to obtain talented workers."