Hyundai Motor Company’s labor and management are at the crossroads of a strike for the first time in five years as they continue to fight over the ‘extension of retirement age to 64’, a key issue in this year’s wage and collective bargaining negotiations. As negotiations neared their end, the union even rejected the company’s compromise plan, which would have effectively extended the retirement age by two years.
According to the industry on the 12th, at the 22nd negotiation held the previous day, Hyundai Motor Company extended the contract period for the ‘Senior Consignment System (skilled re-employment system)’, which is carried out for employees who are retired at the age of 60, to a maximum of 2 years (1 year + 1 year). An additional proposal to increase it was proposed.
The senior contract system, which Hyundai Motor Company introduced through a labor-management agreement in 2019, selects employees who are retired and hires them on short-term contracts for up to one year. The company proposed a plan to extend the contract period by one more year and maintain스포츠토토 the contract period until the age of 62. This effectively has the effect of extending the retirement age by two years. In addition, an amendment to the peak wage system (reduction of wage for the last year of service from 10% to 5%) was also presented.
However, the union stubbornly rejected this proposal, saying, “We cannot accept any proposal other than extending the retirement age to 64.” The industry is paying close attention to whether Hyundai Motor Company’s strike will become a reality. A four-hour partial strike involving all union members is scheduled for two days starting on the 13th, and labor and management are conducting final negotiations ahead of the strike.
In the negotiations that began this morning, the biggest issues are expected to be the management’s proposal for additional wages and the discussion on extending the retirement age. Previously, the company presented the highest ever wage increase plan, including an increase in basic salary of 106,000 won and payment of 350% + 8.5 million won in performance bonus. On the other hand, the union is not giving up on its intention to increase the basic salary by 184,900 won and pay performance bonuses of 30% of the previous year’s operating profit.
If the union rejects the company’s additional proposal today, Hyundai Motor Company will face the risk of a strike for the first time in five years. In a vote for or against the strike conducted by the union among all union members on the 25th of last month, 88.93% voted in favor. A union official said, “Today’s negotiations are the last,” and added, “We are not using it for the purpose of a strike, but if we go on strike, it will go to the end.”