HomeBusinessHyundai Motor's union in South Korea votes on strike By Reuters

Hyundai Motor’s union in South Korea votes on strike By Reuters

© Reuters. FILE PHOTO: Hyundai brand is seen throughout Munich Auto Present, IAA Mobility 2021 in Munich, Germany, September 8, 2021. REUTERS/Wolfgang Rattay/File Photograph

By Heekyong Yang

SEOUL (Reuters) -Hyundai Motor’s unionised staff in South Korea on Friday vote on whether or not to carry a strike after two months of talks with the corporate over wage enhance and extension of the retirement age stalled final week.

If the union levels a strike, it will mark the primary such motion in 5 years associated to wage negotiations on the South Korean carmaker, and will disrupt supply of some well-liked autos which Hyundai has been struggling to ramp up as a consequence of extended part shortages.

The union, one of many largest within the nation with about 40,000 members, is looking for a minimal primary month-to-month pay enhance of 184,900 gained ($139) and a efficiency pay equating to 30% of Hyundai’s 2022 web revenue. Additionally it is demanding Hyundai’s administration to lift the retirement age to 64 from 60.

The voting result’s anticipated at round 6 p.m. (0900 GMT), a union official at Hyundai Motor (OTC:) informed Reuters, including that the union will proceed working-level negotiations with the administration whatever the vote.

Hyundai Motor didn’t instantly reply to Reuters request for remark.

Consultants famous that South Korea’s rising life expectancy and weaker social security web, comparable to retirement pension, have attributed to staff’ demand to lift the retirement age.

“South Korea has comparatively low pension substitute charges, in comparison with different superior international locations in Europe. Whereas these superior European international locations have substitute charges at about 60-70%, South Korea’s price virtually stands at about 30%, which make it tough for folks to exchange their pre-retirement wages,” stated Park Ji-soon, a professor specialised in social safety legislation at Korea College’s Faculty of Regulation.

Unionised staff at Hyundai in South Korea held a four-hour strike for in the future in July in assist of its umbrella union’s common strike, nevertheless it was not associated to the union’s wage negotiations with the administration.

Analysts stated the union would doubtless keep away from extended industrial motion partly as a consequence of unfavourable public sentiment, because the auto business stays one among few brilliant spots within the nation’s sluggish financial system.

“We aren’t anticipating the strike to final too lengthy even when the union does stage a strike, nonetheless, if the strike lasts longer than three days, which might be seen as about 10% of Hyundai’s month-to-month output, it may visibly disrupt Hyundai’s operations,” stated Kim Jinwoo, an analyst at Korea Funding & Securities

Shares in Hyundai Motor had been buying and selling down 0.1%, versus the benchmark ‘s 0.6% fall as at 0234 GMT.

($1 = 1,328.0600 gained)

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