The government makes concessions to extend the retirement age
Pay attention to the results of the union member vote on the 18th
Renault and GM Korea also have differing opinions.
Might be tougher on long-term deficits
▲ Status of wage and collective bargaining between the labor and management of completed automobiles As the labor and management of Hyundai Motor Company managed to reach a provisional agreement in this year’s wage and collective negotiations, there are conflicting views on the impact it will have on the industry as a whole. As the ‘eldest automaker’, which was ready to go on strike, is changing its stance, other unions are expected to come to an agreement with the management one after another. In addition, it is pointed out that the situation is different for each manufacturer and differences of opinion are still large, so it is not yet a comfortable stage.
As of the 13th, among the five domestic automobile manufacturers (Hyundai Motors, Kia, GM Korea, Renault Korea Motors, and KG Mobility), only one, KG Mobility, has completed wage and collective bargaining this year. KG Mobility, which found a new owner last year, concluded a collective wage agreement early last month and even held a signing ceremony.
The fact that the Hyundai Motors labor union, which had put forward the heavy card of ‘extending the retirement age’ amidst favorable industry conditions and record-high performance, took a step back is considered to be the main background for reaching this provisional agreement. In addition to basic matters such as payment of performance bonuses, Hyundai Motor Company’s labor and management agreed to come together through a special agreement to innovate production, such as internalizing ‘Hyper Casting’, a cutting-edge large-scale die-casting (casting) body manufacturing process, and building a multi-purpose and multi-functional factory for the production of luxury models. A vote for union members will be held on the 18th.
There are even evaluations that this agreement will go beyond simply erasing concerns about a strike and will serve as an opportunity for qualitative growth. Yoo Ji-woong, a researcher at Daol Investment & Securities, analyzed, “We expect a rapid increase in car body competitiveness due to the introduction of aluminum car bodies and expansion of the powertrain business of affiliates and partners.” On this day, Hyundai Motor Company’s stock price closed at 189,800 won, up 1.93% from the previous day.
We will have to wait and see the results of the union member vote, but as Hyundai Motor’s labor and management find common ground, it is expected to have an impact on negotiations at other companies. Kia, a group company, is the only one of the five manufacturers that has not even passed the threshold of a provisional agreement, and has even secured the right to strike due to the Central Labor Relations Commission’s decision to suspend mediation. However, considering that Hyundai Motors and Kia have typically negotiated on similar terms, discussions are expected to gain momentum again.
The outlook is not all rosy. Last July, the labor and management of Renault Korea Motors proposed a tentative agreement, including a 100,000 won increase in basic salary and a 2.5 million won lump sum payment, but it was rejected in a vote of union members with only 47.4% in favor. GM Korea is also voting on a provisional agreement that includes a 70,000 won increase in basic pay, but the results cannot be guaranteed because there is a significant difference from the union plan (184,900 won increase, etc.). There is also a view that the union of mid-sized automakers, which have endured losses and sacrifices amidst slump for quite a long time, may this time stick to a tougher stance than Hyundai Motors and Kia Motors.
Reporter Oh Gyeong-jin
2023-09-13 16:27:08
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