Hyundai-Kia Union Sparks Conflict with Special Performance Bonus Demand

Hyundai-Kia Union Demands Special Performance Bonus, Sparking Conflict

The labor unions of Hyundai and Kia, two major automakers in South Korea, have come forward to demand a special performance bonus from the management. Despite achieving record wage increases last year, the unions are seeking additional rewards. They are also requesting a two-year extension of the retirement age.

Unsettling Insecurity Among Affiliated Companies

The unions’ demand for a special performance bonus has caused unease among other companies within the conglomerate, who have already experienced significant wage increases and bonuses. However, the unions argue that the special bonus is necessary for fair distribution.

Disagreement Over Special Performance Bonus

Notably, the Kia union criticizes the management for hesitating to provide the special performance bonus, stating that it should be given without the need for union intervention. The unions firmly believe that the special bonus is a rightful entitlement.

Concerns Over Excessive Demands

Hyundai and Kia granted a special performance bonus amounting to 600 billion KRW last year. However, some sectors of the business community perceive the unions’ additional demands as excessive. Furthermore, these demands are seen as detrimental to the trust between labor and management.

Unintended Consequences of Introducing Special Performance Bonuses

The introduction of special performance bonuses was initially intended to promote a performance-driven culture within Hyundai. However, the unions’ request for additional compensation is deemed excessive and potentially detrimental to industry adaptation and innovation.

Wide-Ranging Union Demands

The Kia union is also calling for the abolition of the “veteran system,” which extends the retirement age. This demand is part of a broader agenda discussed during this year’s labor-management negotiations, which include a four-day workweek and a significant increase in bonuses.

Growing Dissatisfaction and Management Criticism

Overall, the unions’ demands for special performance bonuses and other benefits have sparked discontent among employees. Some workers face the prospect of significant salary reductions if they continue working after retirement. Management criticizes the unions’ confrontational approach, believing it hampers cooperation for mutual benefit.

Looking Towards Resolution Amid Ongoing Union Demands

As the unions continue to press their demands, it remains to be seen how the companies will respond and whether a mutually satisfactory solution can be reached between labor and management.