Employers are also in a difficult position, as the outcomes of negotiations with primary contractor unions will set precedents for future discussions with subcontractors. The ongoing conflict over bonuses is raising concerns about potential general strikes across various industries.
According to industry sources on June 16, the union representing regular employees at Hyundai Motor Company is preparing for a strike due to unresolved wage negotiations. The Hyundai Motor Union (Korea Metal Workers' Union Hyundai Motor Branch) filed a request for mediation with the Central Labor Relations Commission on June 15.
Hyundai and its union have conducted 11 rounds of negotiations since their initial meeting on May 6, but they failed to reach an agreement on bonus demands, leading to a declaration of a breakdown in talks on June 12 and the initiation of strike preparations.
The union is demanding a monthly base salary increase of 149,600 won (excluding seniority raises), a 30% bonus based on last year's net profit, and guarantees for employment and labor conditions related to artificial intelligence (AI).
Similar conflicts over bonuses are emerging in the shipbuilding industry. HD Hyundai Heavy Industries has recently demanded that at least 30% of its operating profits be allocated for bonuses during ongoing negotiations.
This year, HD Hyundai Heavy Industries is projected to achieve an operating profit of approximately 3.628 trillion won. Based on the union's demands, at least 1.0884 trillion won should be allocated for bonus distribution.
Hanwha Ocean is also expected to enter negotiations soon, focusing on bonus discussions. After receiving a 400% bonus last year, the Hanwha Ocean union is seeking improvements in the criteria and payment system for bonuses, indicating a likely tough negotiation ahead.
The steel industry is not exempt from these challenges. POSCO recently filed for mediation with the Central Labor Relations Commission in response to the direct hiring of about 7,000 employees from its subcontractors.
While the direct hiring issue is the surface-level concern, it has been reported that the union is seeking additional compensation demands related to severance payments, which have not been accepted, prompting them to secure the right to strike.
Although the Central Labor Relations Commission's administrative guidance decision has nullified the right to strike, the union plans to continue demanding direct hiring and compensation solutions in future negotiations.
Industry experts predict that the impact of these bonus disputes will spread across sectors. There is significant concern that the recent conflicts over bonuses are evolving beyond simple wage issues to encompass the broader interests of primary and subcontractor relationships. If negotiations remain stagnant, it could lead to intensified protests and general strikes, resulting in production disruptions and financial losses.
Im Chae-woon, an emeritus professor at Sogang University, stated, "Bonuses should be determined based on corporate performance and employee contributions rather than the bargaining power of labor and management. To reduce recurring conflicts over bonuses, it is essential to establish a more objective and rational compensation system."
* This article has been translated by AI.
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