[Editorial] Charging “Social Fund” to Companies is Unfair Demand

The Hyundai Motor Company labor union has asked management to contribute to a social welfare fund. This request, however, has nothing to do with wage negotiation, and, moreover, they are confusing the role of government with that of the company. Labor Unions of the four major car manufacturers, including Hyundai Motor Co., announced that they will raise funds from 5 percent of the net profit of the current year and contribute them to support unprivileged people, to protect irregular workers and to invest in research for vehicle industry development. The idea of labor unions to give interest to the unprivileged class and temporary workers itself is not reproachable. But supporting less-affluent people is the company’s responsibility.

Companies are playing a big role in contributing to the national economy by creating jobs, exporting goods, and paying taxes through investment expansion. In 2002, the percentage of vehicle-related industries in national total tax income reached 18.2 percent. The contribution rate of car exports during January-April of this year came to 8.8 percent.

The car industry is the sector whose market is so competitive that companies make 19 million of surplus vehicles for sale around the world. Therefore, investment in research and development is absolutely indispensable to survive in this world. In addition, it is unreasonable for every car company with different conditions of management and financial status to provide five percent with no exceptional cases.

Regardless of the sluggish market status and depressed domestic consumption, the driving force of the nation’s economy has been the contribution from car industries, which have been ranked in sixth place worldwide in terms of production size and technology. However, the relationship between management and laborers is still in a stage of underdevelopment. It is quite correct that the competitiveness of the Korean car industry depends on the stability of the relationship between management and labor.

The labor union of Hyundai Motors needs to provide more justification before insisting on company contributions to social welfare funds or pay raises of irregular employees. Those issues are not discussable as an individual company. They are wrong to declare a breakdown of negotiations and go on strike due to such reasons. Is it reasonable for companies, who have to survive in the highly competitive international market, to take charge of responsibilities that the nation has to take?