Hyundai Motor management, union try to avert strike
Hyundai Motor Co.'s labor union called on Tuesday for management to increase its latest wage offer as the two sides prepared for a second day of last-ditch talks to avert a threatened strike.
By Agencies |
SEOUL: Hyundai Motor Co.'s labor union called on Tuesday for management to increase its latest wage offer as the two sides prepared for a second day of last-ditch talks to avert a threatened strike.
“We stand by our 8.9 percent salary increase demand,'' said Chang Kyu-ho, a spokesman for the 44,867-strong union.
The company offered Monday to raise basic monthly pay by 80,100 won ($85; euro63), a 5.6 percent gain per worker, said company spokesman Jake Jang. Hyundai had previously offered a 5.4 per cent increase.
The union voted last week in favor of a strike, but postponed the walkout until Wednesday to give negotiators more time to forge a deal.
Labor unrest at Hyundai, the world's sixth-largest automaker, is an annual event. The union has gone on strike every year but one since it was founded in 1987. Workers have already walked off the job twice this year.
This year's showdown comes just two days before a Seoul court is set to issue a ruling on an appeal by Hyundai Motor Chairman Chung Mong-koo against a three-year prison term he received for embezzling company funds.
Chung, who was sentenced in February but is free on bail, is actively running the world's sixth-largest automaker, which aims to become the fifth-largest automaker by 2010.
Negotiations are taking place in Ulsan, the industrial and port city 415 kilometers (260 miles) southeast of Seoul where Hyundai's main factory is located.
Hyundai also doubled its bonus offer Monday to 2 million won ($2,130; euro1,570) per worker if the company meets annual business targets. And it is offering an incentive equal to about three months of salary.
“We can reach a decision if they make an acceptable offer,” said union chief Lee Sang-wook said in a statement on its Web site.
“If not, there's nothing to do but fight.” Chang, the union spokesman, said Monday's talks resulted in agreements in 22, mostly minor, areas of dispute. Still, the agreements “set a very hopeful mood for today's crucial negotiations,” he said.
Last year was Hyundai's worst ever for labor unrest.
Four walkouts in 2006 cost the automaker lost production of 118,293 vehicles worth 1.64 trillion won ($1.75 billion; euro1.23 billion), according to company figures.
“We stand by our 8.9 percent salary increase demand,'' said Chang Kyu-ho, a spokesman for the 44,867-strong union.
The company offered Monday to raise basic monthly pay by 80,100 won ($85; euro63), a 5.6 percent gain per worker, said company spokesman Jake Jang. Hyundai had previously offered a 5.4 per cent increase.
The union voted last week in favor of a strike, but postponed the walkout until Wednesday to give negotiators more time to forge a deal.
Labor unrest at Hyundai, the world's sixth-largest automaker, is an annual event. The union has gone on strike every year but one since it was founded in 1987. Workers have already walked off the job twice this year.
This year's showdown comes just two days before a Seoul court is set to issue a ruling on an appeal by Hyundai Motor Chairman Chung Mong-koo against a three-year prison term he received for embezzling company funds.
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Chung, who was sentenced in February but is free on bail, is actively running the world's sixth-largest automaker, which aims to become the fifth-largest automaker by 2010.
Negotiations are taking place in Ulsan, the industrial and port city 415 kilometers (260 miles) southeast of Seoul where Hyundai's main factory is located.
Hyundai also doubled its bonus offer Monday to 2 million won ($2,130; euro1,570) per worker if the company meets annual business targets. And it is offering an incentive equal to about three months of salary.
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The union wants the automaker to pay 30 per cent of its 2007 net profit to union members as bonuses and raise the retirement age to 60 from 58. Hyundai said Monday it would increase the retirement age to 59.“We can reach a decision if they make an acceptable offer,” said union chief Lee Sang-wook said in a statement on its Web site.
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“If not, there's nothing to do but fight.” Chang, the union spokesman, said Monday's talks resulted in agreements in 22, mostly minor, areas of dispute. Still, the agreements “set a very hopeful mood for today's crucial negotiations,” he said.
Last year was Hyundai's worst ever for labor unrest.
Four walkouts in 2006 cost the automaker lost production of 118,293 vehicles worth 1.64 trillion won ($1.75 billion; euro1.23 billion), according to company figures.
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