Kim Kwang-sik, Former Hyundai Union Leader, Warns Against Wage Conversion of Bonuses

Kim Kwang-sik, former chairman of the Hyundai Motor labor union (currently a labor advisor to Ulsan), stated in an interview with Aju Economic Daily on June 16 that "performance bonuses should remain as bonuses" and emphasized that "we should not use future costs now." [Photo by Yoo Dae-gil, dbeorlf123@ajunews.com]

Kim Kwang-sik, who led the Hyundai Motor labor union during the company's restructuring in 1998, recently addressed the ongoing debate over performance bonuses among large corporations. He asserted, "Performance bonuses should remain as bonuses" and cautioned against using them to cover future costs, which could burden both labor and management.
In an interview with Aju Economic Daily on June 16, Kim emphasized the importance of recognizing the value of workers' dedication and effort. He warned that if performance bonuses become effectively treated as wages, companies may face difficult questions during tough times, such as whether workers can forfeit their wages.
As demands for profit-sharing grow among major corporations like Samsung Electronics and SK Hynix, Kim stressed the need for social solutions rather than outright criticism. He noted, "It is not right to resent workers in large companies for receiving substantial bonuses. From a national perspective, when workers earn more, tax revenues also increase. However, we must continue efforts to ensure equitable distribution."
Regarding proposals to legislate that performance bonus rates be determined at shareholder meetings rather than through labor negotiations, Kim expressed caution. He stated, "We need to consider whether this is a legally enforceable issue," and advocated for public discourse on performance bonuses to ensure they are appropriately allocated.
As potential solutions, Kim suggested institutional measures such as employment stability funds, social solidarity funds, and employee stock ownership plans. He remarked, "We must create an environment where the value of workers grows alongside corporate growth," and emphasized that labor unions should strive to engage with the community through social solidarity funds.
Kim, who led a 36-day strike during the IMF crisis against Hyundai's mass layoffs, highlighted the importance of balanced perspectives. He stated, "We cannot only tell one side of the story. Having experienced both labor representation and public institution leadership, I believe it is crucial to maintain harmony rather than lean towards one side."
He concluded, "While we can achieve through struggle, we should not misuse the phrase that both labor and management have won. When one side wins, the other becomes the loser. We now need a labor-management relationship that fosters shared future value."

* This article has been translated by AI.

Kim SeongSeo biblekim@ajunews.com