As labor unions across various industries, including semiconductors, shipbuilding, biotechnology, and automotive, demand a portion of operating profits as performance bonuses, Chung Eui-sun, Chairman of Hyundai Motor Group, stated that labor disputes should be evaluated considering multiple factors such as national development, shareholders, and the company's growth direction.
Speaking to reporters before a renovation event at Hyundai's Yangjae headquarters on May 14, Chung remarked, "Labor and management have had a long-standing relationship. Despite ups and downs, I believe that choosing the right path is essential for the company's efficient growth. We must consider various elements, including shareholder and national development, in our decisions."
The Hyundai labor union is demanding that 30% of last year's net profit be distributed as performance bonuses during this year's wage negotiations. They are also calling for a transition to a full monthly salary system instead of an hourly wage to accommodate reduced working hours due to robot implementation, as well as retirement age extensions and a 4.5-day workweek. Similarly, the Kia labor union is advocating for a 30% performance bonus, a 100 million won childbirth incentive, and retirement age extensions. Hyundai Mobis is seeking compensation proposals similar to Hyundai's, along with job security amid controversies surrounding the sale of its ramp division. In this context, demands for primary negotiations from newly established union sub-organizations are also increasing.
Chung noted, "Our country has not experienced capitalism for long since the Korean War, so we are currently going through various challenges. I believe we are in a transitional period, and if we navigate this wisely, it could present opportunities for us to lead globally."
Regarding robot development, Chung stated, "Hyundai has primarily focused on automobiles and has not ventured into robotics, so we are progressing while learning from our mistakes. Since software is crucial for robots, we are working to balance hardware, and it is essential that the emotional and cultural aspects of our employees are well integrated, which we are paying close attention to."
He added, "It is our role as a company to create an environment where talented individuals from engineering and science fields can join and express their ideas. We aim to minimize trial and error and quickly overcome errors to deliver better products swiftly."
Chung also expressed concerns about the prolonged conflict in the Middle East. Hyundai began construction of its Saudi Arabian production facility (HMMME) within the King Abdullah Economic City (KAEC) automotive industrial complex last year, aiming for operational readiness in the fourth quarter. Saudi Arabia, which accounts for 35% of total automotive sales in the Middle East, saw Hyundai closely pursue the local leader, Toyota Group, with 140,000 units sold last year.
Chung remarked, "As the Iran conflict prolongs, the completion of our Saudi factory may be delayed. While we are worried about a potential decline in Middle Eastern sales, we will prepare thoroughly to ensure we can sell well once the war ends."
He emphasized the importance of developing new technologies and improving corporate structure during this highly competitive global automotive market. "It is crucial for Hyundai to excel in developing new technologies and enhancing our capabilities. We will learn from any company that has something to teach us and strive to create products that provide greater customer satisfaction, ensuring we have confidence in the technologies we develop and improving their quality," he stated.
Chung reiterated that safety would remain the top priority in the competition for autonomous driving technology. He acknowledged that companies like Tesla and Waymo are advancing rapidly in this area, stating, "Hyundai will also deploy 200 vehicles in Gwangju as a preliminary step. While we can address technological shortcomings, the most important factor is safety. We will focus on customer safety in our development, even if it means being a bit slower."
* This article has been translated by AI.
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