1. Anxiety in labor relations in the metal sector grows as the KMWU engages in field strikes to demand: 1) Participation of Hyundai Motor Group in collective bargaining; 2) Strengthening of accountability among conglomerates; and 3) Wage collective bargaining for 2016
On 16 August, labor and management in the metal industry failed to reach an agreement in their collective bargaining on increasing minimum wage. The Korea Metal Workers’ Union (KMWU) commenced a general strike on 17 August. Trade unions from 48 workplaces and 93,000 workers nationwide participated in this general strike.
Concerns also exist over the prolonged collective bargaining between labor and management of Hyundai Motor and Kia Motors due to the difference in views on major issues.
Labor and management at Hyundai Motor began their 17th round of collective bargaining on 16 August, and Hyundai Motor branch union announced its opposition to the company’s package proposal.
[Table 1] Hyundai Motor Package Proposal for Collective Bargaining
| ▲ Basic pay: Regular seniority-based pay raise + additional seniority-based pay raise
*Seniority-based pay raise: Increase of KRW 14,400 on average/month ▲ Performance-based bonus: 250% of basic pay + KRW 2.5 million ▲ Private pension premium increase: KRW 20,000 → KRW 25,000 |
Kia Motors is expected to continue its collective bargaining, but an agreement appears unlikely in wage negotiations and collective bargaining since Kia Motors branch union is demanding a high wage increase.
[Table 2] Kia Motors Branch Union Demands for Wage Collective Bargaining
| ▲ Basic pay: Increase by KRW 152,050/month
▲ Performance-based bonus: 30% of net profits in 2015 ▲ Increase incentive per service (repairs etc.): KRW 17,000 → KRW 30,000 ▲ Form an ‘Overseas & Domestic Production Allocation Committee’ (tentatively named) composed of an equal number of employee and employer representatives |
2. Anxiety in the shipbuilding industry grows as the Federation of Shipbuilding Industry Unions plans to hold joint strikes in September against government restructuring of shipbuilding companies
The Federation of Shipbuilding Industry Unions held a press conference on 17 August where it announced its plans to hold a solidarity strike on 7 September to block restructuring of Korea’s shipbuilding companies. However, the solidarity strike is expected to be held mainly by the Hyundai Heavy Industries Union, and is not expected to have widespread participation due to internal issues such as wage collective bargaining and cooperation in obtaining orders.
The Federation of Shipbuilding Industry Unions also plans to take action against the National Assembly during the regular session of the National Assembly in September. The Federation seems to be pushing for formation of a labor-government consultative body to block the planned restructuring through ‘a meeting of lawmakers towards development of the shipbuilding companies and stability in employment for workers in the shipbuilding industry’.
3. Anxiety in labor relations at industrial sites grows as illegal strikes are prolonged at Yoosung Enterprise and KB Autotech.
The Yoosung Enterprise branch union under the KMWU went on a hunger strike for an indefinite period from 17 August as part of its continuing struggles against Hyundai Motor over the suicide of Kwang-ho Han.
KB Autotech branch union under the KMWU, has engaged in illegal activities to interrupt operations at KB Autotech factory by completely occupying production facilities and barring access to anyone not from the union. Due to these illegal activities, KB Autotech and its partner firms face difficulties because of a decline in sales, suspension of business with its major customers, and reduction or withdrawal of its financial credit.