Hyundai plans to make regular employees almost 3, 000 subcontractor laborers at its Ulsan plant.
The company recently announced in a statement that it will hire as regular employees 3, 000 out of the total of 8, 000 in-house subcontractors in the following 4 years, following the rulings by Seoul courts and government agencies. By the end of the year it will hire 1,000 workers, increasing the number to 3,000 by 2016.
The decision was made after a long period of tension between Hyundai’s management and its employees, who accuse the automaker of unfair treatment and requested a change of employment status. The company has been constantly sued by its employees and a constant target for criticism for forcing its subcontractors work the same amount of hours as full-time regular employees but offering fewer benefits and lower salaries.
Earlier this year the Supreme Court ruled in favor of a Hyundai Motor subcontract worker, who sued the company back in 2005. The employee, who worked for more than two years under the direction of the auto manufacturer, was promoted to a regular full-time employee. Other automakers were hit hard by the court’s decision, as they were too exploiting the subcontracting system to achieve lower lanor and manufacturing costs.