Government Considers Emergency Mediation Against Hyundai Motor Co.

The government decided Wednesday at a policy coordination meeting presided over by Prime Minister Koh Gun to consider ordering "an emergency mediation" to end a prolonged strike by Hyundai Motor`s labor union unless the industrial dispute at Hyundai is voluntarily settled by early next week.

Choi Kyung-soo, acting chief mediator at the Office for Government Policy Coordination said, “The prolonged strike at Hyundai Motor Co. has been greatly undermining the national economy and eating away at the nation`s international credibility,” adding, “We have reached the decision that if the strike goes on, the government is compelled to exercise its right of emergency mediation.” The official urged both Hyundai Motor and its laborers to reach a compromise at the next round of negotiations likely to open around Aug. 4.

The government estimates that the prolonged strike over wage hikes and collective bargaining agreement by Hyundai Motor`s labor union, which started June 25, has cost the car maker 1.3 trillion won in lost production so far, and that 62 domestic affiliates out of 387, along with overseas` production and assembly lines, are on the verge of suspension of production.

At the Wednesday meeting, participants included Justice Minister Kang Kum-sil, Minister of Commerce, Industry and Energy Yoon Jin-sik, Labor Minister Kwon Ki-hong and other presidential secretaries.

Meanwhile, officials of the labor union at Hyundai Motor Co., who are now taking collective summer vacation, convened an emergency meeting, clarifying their position by saying, “We will resume negotiations with the management at 2 p.m. August 4 after the summer vacation. If the government does indeed follow through with an emergency mediation procedures, it will be a move against the labor sector as a whole. Should the government not withdraw its decision, we will continue a massive protest in collaboration with the Korean Confederation of Trade Unions.”

For the company`s part, it held a staff meeting to discuss its future course of action, but didn`t make public its official stance in fear of upsetting the union workers.

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