Hyundai Motor’s union in South Korea votes on strike

HYUNDAI Motor’s unionised workers in South Korea on Friday (Aug 25) vote to decide on a strike after two months of talks with the company over wage increase and extension of the retirement age stalled last week.

If the union stages a strike, it would mark the first such action in five years related to wage negotiations at the South Korean carmaker, and could disrupt delivery of some popular vehicles which Hyundai has been struggling to ramp up due to prolonged component shortages.

The union, one of the biggest in the country with about 40,000 members, is seeking a minimum basic monthly pay increase of 184,900 won (S$189) and a performance pay equating to 30 per cent of Hyundai’s 2022 net profit. It is also demanding Hyundai’s management to raise the retirement age to 64 from 60.

The voting result is expected at around 6.00 pm (0900 GMT), an union official at Hyundai Motor told Reuters.

Hyundai Motor did not immediately respond to Reuters request for comment.

Unionised workers at Hyundai in South Korea held a four-hour strike for one day in July in support of its umbrella union’s general strike, but it was not related to the union’s wage negotiations with the management.

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Analysts said the union would likely avoid prolonged industrial action partly due to unfavourable public sentiment, as the auto industry remains one of few bright spots in the country’s sluggish economy.

Shares in Hyundai Motor were trading up 0.1 per cent, versus the benchmark Kospi’s 0.8 per cent fall as at 0111 GMT. REUTERS