Hyundai Motor Company Achieves Unprecedented Wage Increase and Collective Bargaining Agreement

According to the Hyundai Motors branch of the Korea Metal Workers Union, this year’s collective bargaining with Hyundai Motor Company has ended with a 58.81% approval rate (22,703 votes) for the ‘Interim Agreement on Wage and Collective Agreement 2023’. The agreement includes a 111,000 earned increase in base salary, performance bonuses, incentives, traditional market gift certificates, stock shares, and other benefits. It also involves preparations for a ‘Special Agreement for Shared Future Growth’, which focuses on internalizing core technologies for new industries. Labor and management also agreed to recruit new technical positions and increase support for retirement and childcare. The extension of retirement age will be reviewed in the first half of next year. Meanwhile, Kia and GM Korea are still in negotiations, with Kia experiencing difficulties as the branch’s negotiating team walked out due to disagreements over retirement age and recruiting new workers. GM Korea’s provisional agreement was rejected by the union members, leading to a 4-hour strike. Renault Korea Motors presented a second tentative agreement, which will be voted on by union members. KG Mobility already reached a collective wage agreement last month.

58.81% approve… Wage and collective bargaining passed, including a 111,000 increase in basic pay
Labor and management are also preparing a ‘special future shared growth deal’
Kia, GM Korea reach agreement before Chuseok

On the 18th, the Hyundai Motors branch counted the votes of union members for and against this year’s temporary wage agreement. ⓒ Hyundai Motor Branch of the Metalworkers Union

This year’s collective bargaining between labor and management at Hyundai Motor Company has ended. The Hyundai Motors branch of the Korea Metal Workers Union (Branch President Hyun-ho Ahn) evaluated this year, “We have achieved an unprecedented strengthening of base pay and performance bonuses.”

On the 18th, the Hyundai Motors branch announced that the ‘Interim Agreement on Wage and Collective Agreement 2023’ was passed with an approval rate of 58.81% (22,703 votes). The percentage who voted was 86.47%. Of the 44,643 registered members of the Hyundai Motors branch, 38,603 voted. There were 15,880 votes against (41.14%), 6,040 abstentions (13.53%), and 20 votes (0.05%) in favor of invalidity.

“Higher performance salaries and bonuses than ever”

According to the results of this year’s collective bargaining, the Hyundai Motors branch said, “The impact of the wage increase exceeded 30 million won per year for the first time.”

The agreement includes △ an increase in base salary of 111,000 earned (including salary increase) △ 300% + 8 million earned in management performance bonus in 2022 △ 100% + 2.5 million earned in incentives △ 250,000 earned in traditional market gift certificates △ 15 shares of stock (2.79 million earned) △ Includes summer vacation expenses of 800,000 earned (increase of 500,000 earned) and △ second shift points of 1 million points (an increase of 500,000 points). The resulting average increase effect for union members is 34.3 million won. This is the amount calculated by the Hyundai Motor branch excluding the special performance bonus of 4 million earned and 10 shares of stock paid last March.

“Internalizing the manufacturing base for the new industries of the future”

In addition, Hyundai Motor Company labor and management prepared a ‘Special Agreement for Shared Future Growth’. In last year’s collective bargaining, Hyundai Motor Company decided to ‘build a new electric vehicle factory with the aim of starting construction in 2023 and mass production in 2025 in order to expand electric vehicle production facilities and gradually reorganize old production plants.’

This year, the Hyundai Motors branch explained, “We have internalized the core technologies base and manufacturing parts for the new industries of the future.” First of all, Hyundai Motor Company is promoting a wider application of aluminum bodies in finished vehicles to convert to electrification and reduce body weight. To this end, we decided to internalize ‘Hyper Casting’ technology, an advanced large-scale die-casting (casting) car body manufacturing method, and apply it to mass production from 2026.

We are also pursuing the construction of multi-functional and multi-purpose production plants for car models (convertibles, limited editions, etc.) that cannot be produced on existing mass production lines. In addition, it was decided to internalize hydrogen fuel cell system technology within 2024 in order to respond to changes in the employment of workers in the power train sector.

Hyundai Motor Company labor and management also agreed to △recruit 800 new technical positions △increase incentives for long-term retirees in all categories (currently 3 to 6 million won → 3.5 to 8 million won) △ expanding support for childbirth and childcare.

Retirement age extension, pending amendment of the law
The skilled re-employment system for one year will be maintained.

Regarding the extension of the retirement age (linked to national pension receipt time) requested by the Hyundai Motor branch, a separate agreement was decided to ‘implement after labor management consultation when the law is reviewed due to changes in government policy and social. awareness of extending the retirement age until the first half of next year.’

Early this year, the Hyundai Motors branch conducted a baseline survey of extended operators to prepare for collective bargaining. As a result, 66.9% of respondents (392 people) chose to extend the retirement age as the most urgent agenda for system improvement in collective bargaining ( select up to 3 items) there is . This was followed by expanding welfare (39.8%), reducing working hours and expanding mealtimes (34.9%), abolishing the peak wage system (34.4%), and a long-term reduction on electric vehicles (33.6%).

It was decided to maintain the current skilled re-employment system, which allows only those who wish to retire at retirement age to work for another year in their current process. In this year’s collective bargaining, the company was involved in hiring skilled workers in the Hyundai Motors branch △ In the first year of their retirement, workers will be employed in their own processes and in the 2nd year, they will participate in a company- necessary processes △Retired people with more than 25 years of service (lifetime employee ID card) Vehicle discount purchase conditions: age 75 or younger, redemption period They also offered 1+1 skilled re-employment and a 5% salary discount (10 % at present) for those aged 60 and 60, assuming the 3 year limit is accepted (2 years at present). However, Hyundai Motor’s branch said, “We refused to accept it because we believe there should be no withdrawal from the collective agreement.”

ⓒ Hyundai Motor Branch of the Metalworkers Union

Kia, GM Korea reach agreement before Chuseok

Meanwhile, it is unclear whether other automakers’ unions will end collective bargaining before Chuseok.

In last year’s collective bargaining, Kia labor and management evaluated that they had “departed from negotiating what was almost a copy of the Hyundai Motors agreement,” and this year’s Kia negotiations are in trouble. Hong Jin-seong, head of the Kia Motors branch of the Metalworkers’ Union, tore up the company’s offer and walked out with the branch’s negotiating team at the 10th main negotiation held on the 14th.

An official from the Kia Motors branch said, “The branch’s negotiating group is asking to extend the retirement age and recruit new workers to the year before receiving the national pension, which is a separate request number 1, but the company is doing ‘reform plan’ by first asking to review the provision for hiring (children of employees under the collective agreement) first “I left the negotiation room because I gave up,” he explained. The Kia Motors branch decided on the 14th to ‘suspend discussions on overtime production’ with management until this year’s collective bargaining is over.

The GM Korea branch of the Metalworkers Union prepared the first provisional agreement on the 8th, but the union members did not accept it. As a result of union members voting on the provisional agreement, the approval rate was only 40.59%.

The first tentative agreement of GM Korea branch included the following: △ increase in monthly base salary of 70,000 won △ win payment of 10 million in performance and lump sum △ share plans for future vehicle models with the union by the end 2023. The GM Korea branch believes that the reason for rejecting the temporary agreement was that the level of the wage increase did not meet the expectations of union members. The industrial action committee of GM’s Korean branch decided to hold a 4-hour strike in the first half and second half for 3 days starting on the 18th.

An official from the GM Korea branch said, “This year, in collective bargaining in similar industries (mid-sized automakers such as Renault Korea Motors), the basic salary increase was about 100,000 won per month, but GM Korea was short of this,” adding, “Even though it’s been 9 years, last year GM Korea raised the minimum wage. “It is true that we turned into a surplus, and union members had high expectations for a pay rise, but the first tentative agreement did not succeed. these expectations,” he said. According to the GM Korea branch, by global GM standards, office workers received about 13 million won in performance bonus last March.

Renault Korea Motors labor and management presented a second tentative agreement on the 15th. The second tentative agreement included △ a 100,000 won increase in base salary, △ a 2.7 million won lump sum payment, △ a 1 million won productivity incentive, and △ a 310,000 won payment in labor management harmony points. Union members will vote for or against this temporary agreement on the 19th.

Last month, KG Mobility labor and management agreed on a collective wage agreement that included a 50,000 increase in basic pay and a one-day special holiday for workers’ 60th birthdays.

Copyright © Participation and Innovation Reproduction and redistribution prohibited.

#Hyundai #Motors #23year #collective #bargaining #agreement #approved.. #Wages #performance #bonuses #record #highs


Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.