Hyundai union asks for salary increases image

The South Korean union that represents Hyundai Motor Co’s workers has asked the company to rise wages, bonuses while cutting into the work hours.

The demands have been raised by the home country union as the carmaker is closing in o the annual June talks over salaries, with the union threatening that if demands re not met, industrial action would follow.

Hyundai Motor has been facing increasing difficulties lately, as the country’s won rise has eaten into the company’s earnings and competition is growing stronger, internally and globally. The union seems to know it has the upper hand this time, as Hyundai’s worldwide production is 40% supplied by internal facilities, and any strike action in South Korea could have implications globally.

Lee Kyung-hoon, which is the union’s new leader has been considered a more moderate boss, but he did comment to a local newspaper he would ultimately be “willing to risk waging an all-out war” for a better deal this year.

The union seeks a 8.2% rise for the basic wage – with also a more clearly defined regular wage, that forms the basis for overtime calculation, as well as other payments. They also seek to achieve a performance bonus pay that would total 30% of the company’s net profit from 2013 and a reduction of one hour to 16 daily working hours, after Hyundai already cut back in March 2013 the total from 20 to 17.

Via Reuters