From
Send to

Korean firms brace for labor strife

July 8, 2012 - 18:30 By Korea Herald
Automobile workers likely to go on strike this week; may include Hyundai union


Automobile workers led by the union at Hyundai Motor Co. are gearing up for their first general strike in four years this week, setting the tone for what is expected to be the fiercest season of labor unrest in recent years.

The Korean Metal Workers Union, which includes the car industry, will conduct a four-hour walkout on July 13 and 20, demanding improvements in working conditions and wage increases. The largest industrial union group with about 150,000 members will vote on the plan on Tuesday and Wednesday.

The Korea Confederation of Trade Unions, the smaller of the two dominant umbrella labor groups in Korea, is also planning a massive strike later next month. The metal industry union belongs to the KCTU.

The joint walkout by metal industry workers is more likely to be materialized, observers said, as they have never voted down a walkout plan.

At least two of the country’s five carmakers ― Hyundai Motor and GM Korea ― are likely to participate in the industry-wide walkout.

The Hyundai Motor union had avoided strikes for the past three years, as dovish leaders led collective bargaining with the management without strikes.

Now with hawks in power, it is back on the offensive, proclaiming that it will participate in the KMWU-led strike.

“Negotiations fell through on July 27, because the management didn’t show any willingness to compromise on our demands for a change in the current work shift system, a shift of irregular workers’ employment status and next year’s wage levels,” the union said in a statement. “We plan to join the July 13 walkout.”

Unionized workers at GM Korea, the local unit of U.S. automaker General Motors, have already approved a partial strike plan, seeking higher pay.

In an overwhelming 84 percent vote last week, the workers decided to lay down their tools for three hours on Tuesday, Thursday and four hours on Friday.

The KCTU is calling on all members to go on a four-day strike from Aug. 28-31, pressuring the government on key labor issues ― irregular workers, layoffs and the amendment of basic labor laws.

Employers, meanwhile, fear the looming wave of labor strikes may add to the woes of local industries that are already struggling in an unfavorable global business environment.

“The local economy is in a difficult shape due to domestic and global setbacks. At this difficult time, labor is pushing for illegal collective action, apparently out of political consideration of the looming presidential election,” the Korea Federation of Employers said in a statement.

This year’s “summer labor strike,” or the seasonal wave of labor strikes, started late last month, with thousands of truckers and construction workers going on massive walkouts.

By Lee Sun-young (milaya@heraldcorp.com)