Unionized workers at HHI and Hyundai Motor gear up for general strike

The nation’s two largest trade unions have started holding a vote on a general strike after failing to reach an agreement with management over this year’s wage and employment rules. Workers at the two companies are expected to approve the strike.

Unionized workers at Hyundai Motor and Hyundai Heavy Industries (HHI) said that they both held a vote on the strike Wednesday. It was the first time for the two giant unions to hold a vote for a strike on the same day.

A total of 47,000 workers at the nation’s largest automaker in the cities of Ulsan, Jeonju, Asan and Namyang participated in the one-day vote, and whether they stage a walkout will be announced Thursday.

Also, about 16,000 unionized workers at HHI also started the three-day vote on the general strike on Wednesday 6:30 a.m. The unionists will announce the result of the poll Friday.

It seems certain that the two unions will stage a general strike as they are reportedly very disappointed by the managements’ positions during the negotiations in May.

If workers at the two unions approve the strike, a strike by Ulsan’s two largest unions is expected to be the first of its kind in 23 years since they struggled together for better wages in 1993.

Hyundai Motor and HHI officials were not forthcoming about the unionized workers’ move.

“The result has yet to come out. And we will keep focusing on the union’s decision,” said an official.

“We are, however, still willing to engage in further negotiations.”

Business circles and the local community in Ulsan voiced deep concerns about the union’s decision.

“It is time for workers and the company to cooperate,” Kwon Myung-ho, head of Ulsan Dong-gu district office, said.

“Dong-gu area in Ulsan has been the center of the nation’s shipbuilding industry, but has faced economic crisis along with the restructuring process in the industry. I strongly suggest both sides to split differences and find a way to get over the situation.”

It would be a severe blow in the HHI’s efforts for management normalization if the unionized workers decide to stage a walkout alongside Hyundai Motor workers. Creditors of the embattled shipbuilder demanded the union’s cooperation as one of the baseline conditions for the shipbuilder’s restructuring plan.

HHI announced a self-rescue plan that includes asset sales and a cut in the workforce to save 3.5 trillion won. Under the shipbuilder’s self-rescue plan, temporarily approved by its creditors and led by KEB-Hana Bank, it will sell stock investments, non-core assets and cut its workforce, which will reduce its debt-to-equity ratio to below 100 percent by 2018.

Hyundai Motor workers also demanded a 7.2 percent increase in basic pay along with paying 30 percent of last year’s net profit as incentives as well as reinstatement of fired workers during a dozen meetings with the company officials.
Source: KTimes