Auto Worker Labor Talks Make Progress

Automobile labor unions’ strikes are entering a new phase.

Hyundai Motors labor and management, whose tense confrontation halted production and shipment, are now narrowing down their differences over core issues through negotiation.

GM Daewoo’s labor union also drew up a tentative agreement, and Kia Motors decided to continue their negotiations after going back to regular work.

As the strike is prolonged, damage in Hyundai Motors and its suppliers is increasing.

The Progress of the Automobile Industry’s Wage Negotiations –

GM Daewoo labor and management tentatively agreed on a 56,000 won basic salary (3.98 percent increase) with the addition of two million won for settlement and one million won for business goal achievement in their 20th negotiation meeting on July 21. The labor union members will vote on this tentative agreement next week.

Hyundai Motors labor and management are also reported to have narrowed down their differences considerably in their 17th negotiation meeting as they took a step back from their positions over main issues such as the rate of wage increase and the introduction of a monthly payment system. Hyundai Motors workers, who were working two hours a day until July 19, started to work eight hours a day on July 20.

A source at Hyundai Motors said, “Labor and management are yielding to each other over main issues and are expected to draw up an agreement early next week since they all want to finish negotiations before the summer break starts.”

Kia Motors decided to break up their partial strike and go back to regular work from July 21 to July 25. They will make a decision on next moves after negotiating with management through July 25.

However, the Ssangyong Motors labor union held a “three steps and one kneeling bow” march in the downtown section of Pyeongtaek, Gyeonggi Province, after working only 15 minutes on the morning of July 21.

Hyundai Motors’ Damage Increasing –

Hyundai Motors reported that the amount of damage due to the strike increased to 1.15 trillion won (equal to 83,719 vehicles). Shipment for export has halted for two days on July 21. Hyundai Motors had announced that they would stop shipments until July 23. Damage among Hyundai’s 3,400 first and second suppliers amounts to 700 billion won.