- Anxiety over labor relations grows among automakers with wage/collective bargaining for 2017
Labor and management for Hyundai Motor Co. held their 23rd bargaining session on 16 August, but failed to reach agreement. Management suggested an increase of KRW 42,829 (USD 38) in base payment per month, a bonus equal to 200% of monthly base payment, and an additional KRW 1 million (USD 887). However, the Hyundai Motor trade union made plans right after the session to go on strike.
Labor and management for Kia Motors held a collective bargaining session on 10 August, but also failed to reach agreement due to their different views regarding the scope of ordinary wage. The Seoul Central District Court will make a ruling on the first instance regarding whether regular bonuses should be included in ordinary wage or not. If the Court decides that the principle of good faith does not apply and that regular bonuses are included in ordinary wage, Kia Motors will face an additional wage burden of about KRW 3.1 trillion (USD 2.75 billion).
Collective bargaining between labor and management for GM Korea will be prolonged due to union representative elections and the CEO position being currently vacant, etc.