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Hyundai Motor workers vote for strike

By KH디지털2

Published : Sept. 10, 2015 - 08:53

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Unionized workers at Hyundai Motor Co., South Korea's top automaker, have voted in favor of a strike, lending support to their leaders in wage negotiations with management down the road, labor officials said Thursday

In a yes-or-no vote asking some 48,000 unionists whether to go on strike, 77.9 percent gave the green light, according to the union. The vote was held at Hyundai Motor plants across the country on Wednesday.

The two sides failed to narrow differences on the labor union's demands related to working conditions and the union declared a "breakup" in negotiations with the management late last month.

The labor union has been seeking a 7.84-percent hike in base salary and asked that 30 percent of net profit be set aside for bonus payments. It also has been demanding an agreement be signed to guarantee full job security both for regular and irregular workers.

Under the current law, the union can ask for mediation by the National Labor Relation Commission. In case the commission decides an end to mediation, the union will secure legal grounds for a strike, which would mark the fourth consecutive year of labor disputes at Hyundai Motor.

Both are scheduled to resume negotiations later in the day.

Besides disagreement over proposed demands for a salary hike and bonus payment, at issue is how to iron out a difference over the push by Hyundai Motor Group, which also includes Kia Motors Corp., to adopt a wage peak system.

The new wage system calls for employees to accept a reduced salary in exchange for working until the retirement age set by the company. The government is encouraging public and private companies to adopt the system in an effort to help alleviate high youth unemployment.

On Tuesday, Hyundai Motor President Yoon Gap-han issued a statement in which he said that "there is nothing to be gained from a strike that ignores reality," warning that it could end up causing "customer defections."

Despite the support from the unionized workers, it is still unclear whether the union actually will go ahead with a strike, given the tough business conditions facing the auto giant.

Experts say that a strike could exacerbate Hyundai Motor's recent slump as the company is already facing tough market conditions at home and abroad. Sales have been falling in the face of fierce competition and the overall downturn in emerging markets.

During the January-August period, Hyundai Motor sold a cumulative 3,143,384 units, down 2.8 percent from a year earlier, according to company data. (Yonhap)