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 City), stated in an interview with Aju Economy on June 16 that "performance bonuses should remain as bonuses" and emphasized that "we should not pull future costs into the present." [Photo by Yoo Dae-gil, dbeorlf123@ajunews.com]

1998 saw Kim Kwang-sik lead the Hyundai Motor labor union during a period of mass layoffs. Recently, he addressed the ongoing debate over performance bonuses among large corporations, asserting that "performance bonuses should remain as bonuses" and cautioning against the practice of using them to cover future costs. He acknowledged the need for fair distribution of the achievements generated by workers but expressed concern that solidifying these bonuses as wages could burden both labor and management.
In an interview with Aju Economy on June 16, Kim stated, "The value of workers' dedication and effort should not be undermined. However, if performance bonuses become wages, companies may face the question of whether 'workers can forfeit their wages' during tough times."
As demands for profit-sharing among large corporations like Samsung Electronics and SK Hynix grow, Kim emphasized the importance of seeking social solutions rather than resorting to blanket criticism. He remarked, "It's not right to resent workers at large companies for receiving substantial bonuses. From a national perspective, when workers earn more, tax revenues also increase. However, we must continue efforts to share these gains."
Regarding proposals to legislate the determination of bonus payout rates at shareholder meetings rather than through labor negotiations, Kim expressed caution. He noted, "We need to consider whether this is a matter that can be legally mandated. We should ensure that performance is appropriately recognized through public discourse on bonuses."
As potential solutions, he suggested institutional measures such as employment stability funds, social solidarity funds, and employee stock ownership plans. Kim stated, "We need to create an environment where the value of workers grows alongside corporate growth," adding that labor unions should also strive to engage with the community through social solidarity funds.
Kim Kwang-sik, who led a 36-day general strike during Hyundai's mass layoffs amid the IMF financial crisis, emphasized the importance of balanced perspectives. He said, "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 must avoid overusing the phrase that both labor and management have won. When one side wins, the other becomes the loser. It is essential to foster a labor-management relationship that cultivates future value together."

* This article has been translated by AI.

Kim SeongSeo biblekim@ajunews.com