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Hyundai Motor, Hyundai Heavy unions demand adherence to standard wage rules
Union workers at South Korea's largest car manufacturer and shipbuilder are moving to demand full adherence to standard wage rules that could lead to standoffs with management and strikes, industry sources said Tuesday.
Sources said union leaders at Hyundai Motor Co. and Hyundai Heavy Industries Co. are demanding that management expand the boundaries of what makes up standard wages to conform to a landmark Supreme Court ruling made on Dec. 18.
The ruling stated that fixed bonuses should be counted as part of workers' wages, which was not the case in the past. Expanding the scope of standard pay affects the amount of severance pay employees receive when they retire, directly impacting corporate costs and operations. Executives have also claimed that the change will result in more money being paid for overtime work.
Such developments, managers argue, will restrict a company's ability to make timely investments, conduct research and development and hire more people. They have said that changes must be made gradually so as to give companies time to make the transition.
The outcome of the talks will be closely watched as they will influence related proceedings in other companies that have to tackle similar issues this year.
Hyundai Motor union leaders said in an in-house bulletin that there is a need to resolve the standard wage issue in the workers' favor. It said that only by handling this issue head-on can the unfair distribution of wealth and difficult working conditions be resolved.
"There is a need for all 47,000 union members to be united in reaching this goal," it said. The head of the union warned that if the company fails to listen to demands made by workers, it could lead to a strike.
On standard wages, union representatives said that all fringe welfare benefits as well as fixed bonuses must be included as normal pay. In addition, union leaders at the carmaker said they will call for a 159,614 won (US$153.40) hike in the monthly wage this year, formal hiring of temporary workers on assembly lines, and sweeping work hour reforms.
The management said it wants to wait for the outcome of ongoing court proceedings tied to standard wages that were initiated by some union members, in effect responding that it will not engage in immediate negotiations as demanded by workers.
Mirroring the standoff at South Korea's No. 1 carmaker, union leaders at Hyundai Heavy made clear that the standard wage issue must be handled at the upcoming wage talks.
Workers at the world's largest shipbuilder said they can join forces with workers at Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co. that are affiliates of the larger Hyundai Heavy Industries Group.
"The Supreme Court made its ruling, so the company needs to engage in talks right now," a union leader said.
Despite such a stance, management said it needs to check the ongoing legal disputes. Executives have said that the standard wage issue is not something that can be discussed at the annual wage negotiations.
The union at Hyundai Heavy said it will ask the company to increase wages by 132,013 won a month, a 6.51 percent hike from the year before, and demand 250 percent bonuses and some additional compensation.
They are pushing for a 50,000 won per month automatic pay raise that is given with each passing year of employment. In the past, workers got a 23,000 won pay raise per month for each year with the company.
The two companies have their main production facilities at the industrial city of Ulsan, 414 kilometers southeast of Seoul, and have a reputation for having hardline unions.
Source: Yonhap
Sources said union leaders at Hyundai Motor Co. and Hyundai Heavy Industries Co. are demanding that management expand the boundaries of what makes up standard wages to conform to a landmark Supreme Court ruling made on Dec. 18.
The ruling stated that fixed bonuses should be counted as part of workers' wages, which was not the case in the past. Expanding the scope of standard pay affects the amount of severance pay employees receive when they retire, directly impacting corporate costs and operations. Executives have also claimed that the change will result in more money being paid for overtime work.
Such developments, managers argue, will restrict a company's ability to make timely investments, conduct research and development and hire more people. They have said that changes must be made gradually so as to give companies time to make the transition.
The outcome of the talks will be closely watched as they will influence related proceedings in other companies that have to tackle similar issues this year.
Hyundai Motor union leaders said in an in-house bulletin that there is a need to resolve the standard wage issue in the workers' favor. It said that only by handling this issue head-on can the unfair distribution of wealth and difficult working conditions be resolved.
"There is a need for all 47,000 union members to be united in reaching this goal," it said. The head of the union warned that if the company fails to listen to demands made by workers, it could lead to a strike.
On standard wages, union representatives said that all fringe welfare benefits as well as fixed bonuses must be included as normal pay. In addition, union leaders at the carmaker said they will call for a 159,614 won (US$153.40) hike in the monthly wage this year, formal hiring of temporary workers on assembly lines, and sweeping work hour reforms.
The management said it wants to wait for the outcome of ongoing court proceedings tied to standard wages that were initiated by some union members, in effect responding that it will not engage in immediate negotiations as demanded by workers.
Mirroring the standoff at South Korea's No. 1 carmaker, union leaders at Hyundai Heavy made clear that the standard wage issue must be handled at the upcoming wage talks.
Workers at the world's largest shipbuilder said they can join forces with workers at Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co. that are affiliates of the larger Hyundai Heavy Industries Group.
"The Supreme Court made its ruling, so the company needs to engage in talks right now," a union leader said.
Despite such a stance, management said it needs to check the ongoing legal disputes. Executives have said that the standard wage issue is not something that can be discussed at the annual wage negotiations.
The union at Hyundai Heavy said it will ask the company to increase wages by 132,013 won a month, a 6.51 percent hike from the year before, and demand 250 percent bonuses and some additional compensation.
They are pushing for a 50,000 won per month automatic pay raise that is given with each passing year of employment. In the past, workers got a 23,000 won pay raise per month for each year with the company.
The two companies have their main production facilities at the industrial city of Ulsan, 414 kilometers southeast of Seoul, and have a reputation for having hardline unions.
Source: Yonhap
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