Korea’s 5 major automakers began wage/collective bargaining for 2017, paying sharp attention to labor trends which have gained momentum with the new government.
Concluding collective agreements will not be easy this year. Management has complained of decreasing revenues with stagnation in sales while labor is seeking to have its demands met through the government’s labor-friendly policies.
Labor and management at the five automakers (Hyundai Motor Co., Kia Motors Corp., GM Korea Co., Renault Samsung Motors Corp. and SsangYong Motor Co.) have just begun reviewing each other’s proposals, but gaps have already shown up in those related to wages.
Labor and management plan to conclude their negotiations before summer vacation season (first week of August), but this may be impossible if the gap between the two parties is too wide. Negotiations may cease or strikes occur at workplaces with militant unions.
A source from the industry stated that “labor has some advantage with the labor-friendly tendency of the new government. Uncertainty during bargaining is quite serious for companies, if labor brings to the table other labor-related issues outside the bargaining agenda.”