This year, while labor disputes have decreased compared to last year, work loss days have increased due to strikes in major manufacturing sectors.
According to the Korea Employers Federation, as of the end of September, there were 88 labor disputes, down from 99 during the same period last year. However, work loss days totaled 489,190, marking a 45.2% increase from 336,800 days in the previous year.
In labor conflicts, demands for wage increases have been accompanied by calls for a share of corporate profits. In some workplaces, there have been demands related to personnel and management rights, such as agreements with unions on new hires and the introduction of new technologies and automation, as well as requests affecting fixed labor costs and workforce management, including retirement age extensions and fixed bonuses.
Notably, Hyundai Motor, HD Hyundai Heavy Industries, and Hanwha Ocean have experienced repeated partial strikes, full strikes, and sit-ins. Recently, there has been a growing trend of demands for direct distribution of a certain percentage of corporate profits alongside wage increases.
In the case of Hyundai Motor, partial strikes have been ongoing since July, and in August, the company conducted its first full eight-hour strike in ten years. Industry estimates suggest that this strike resulted in a production loss of approximately 55,200 vehicles and a revenue loss of at least 2.3 trillion won.
Major automotive parts manufacturers have also faced labor disputes related to collective bargaining and restructuring of business and production. The automotive industry has a tightly interconnected production structure between finished vehicles and parts suppliers, raising concerns that disruptions in key parts suppliers could ripple throughout the entire industry.
HL Mando, an automotive parts supplier, is currently experiencing ongoing labor disputes. Given that it supplies key components to major automakers, prolonged labor conflicts could impact the supply chain.
The Korea Employers Federation identified a key characteristic of this year's labor disputes as the spread of demands for 'N% profit sharing linked directly to corporate performance.' Demands for direct payments to workers based on a certain percentage of corporate profits have been prominently raised in major manufacturing sectors, including Hyundai Motor's '30% of net profit,' HD Hyundai Heavy Industries' '30% of operating profit,' and HL Mando's '15% of operating profit.'
The federation stated, 'Major manufacturing sectors such as automotive and shipbuilding are interconnected with numerous partner companies and upstream and downstream industries, so prolonged strikes or shutdowns of production facilities at key businesses can affect the production, sales, employment, and delivery schedules of partner companies.' It emphasized the need to establish reasonable negotiation practices considering the industry's cyclical nature, global competition, and the impact on partner companies.
* This article has been translated by AI.
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