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Hyundai, Union Reach Bonus Agreement

Posted January. 18, 2007 07:11,   


Labor and management of Hyundai Motors came to an agreement on the payment of incentives on January 17 and closed the conflict that had lasted for 21 days. They agreed that the incentives payable (50% of normal wage) shall be paid “irregularly” as encouragements on the condition that the payment is made when production goals are met. But both sides agreed to not recanting the accusations, indictments and the cases of claims for damages that occurred due to the unpaid incentives.

It appears that the arrest of the former head of the labor union Lee Heon-gu gave both sides considerable pressure and led to a dramatic turn in the Hyundai Motors situation.

The delegates, including the president of Hyundai Motors Yun Yeong-cheol and head of the labor union Park Yoo-ki, signed a written agreement with such content on the ground floor of the headquarters of the Ulsan plant at 5:10 p.m. today.

They clarified in the written agreement that the end-of-year incentive shall be paid as “encouragements for goals achieved” at the point when the quantity left to the production goal of 2006 (28,732 units) and the number of cars of which the production was withheld during the incentive crisis (21,682 units) are made up for. Also they decided that the lawsuits and legal claims for damages which the labor union requested to be recanted will not be withdrawn and that legal charges will be called for. Accordingly, the dispute between labor and capital that was triggered by the capital’s decision to pay only 50% of the incentive on December 28 last year came to an end in 21 days, and the strike of the night shift for 6 hours the labor union planned to deploy from 9 p.m. on January 17 was cancelled.

Meanwhile the Special Division of Ulsan District Court arrested and imprisoned the former labor on the charge that he received 200 million won from Vice Chairman Kim Dong-jin (then the President) over the course of wage negotiations (malfeasance in office).

The chief judge at Ulsan District Court revealed the reasons to the issue of warrant, saying, “Bank accounts in others’ names used to split the 200 million won were found elevating the possibility of the effacement of evidences and fleeing, and when the allegations are acknowledged a heavy penalty can be expected.” But Lee denied the allegations even in the practical inspections for a warrant, saying, “I never received money.”