Hyundai Motor union votes for strike after collective bargaining fails

SEOUL/ULSAN, June 24 (Yonhap) — Union members of Hyundai Motor Co., South Korea’s leading automaker, voted overwhelmingly in favor of a strike on Monday after annual wage negotiations between management and the union failed.

Earlier this month, the union decided to call off further negotiations after the eighth round of wage negotiations took place at the company’s plant in Ulsan, 299 kilometers southeast of Seoul.

The vote on Monday took place at the Ulsan plant. According to the union, 89.97 percent of the 41,461 votes cast were in favor of a strike.

If this strike goes ahead, it would be the company’s first strike in six years. Hyundai Motor’s union has not gone on strike in the past five years, taking into account various factors such as the COVID-19 pandemic and national trade issues.

The union will discuss whether and when the strike should take place at a future meeting. In addition, it will continue to conduct negotiations at working level with the company management.

Company management reportedly offered a 101,000 won ($73.50) increase in monthly base salary and an additional bonus package that includes a bonus of 350 percent of an individual’s monthly salary and the issuance of 20 company shares.

The company also offered to set up a joint management-union fund to be used for donations and other public assistance programs.