Hyundai Motor’s union members wrought havoc at a company ceremony on Jan. 3. The company president received a facial wound after unionized workers pushed him, while other members sprayed fire extinguishers, covering the hall with a misty cloud. The solemn New Year ceremony had to come to an abrupt end.
The reason the union caused such a commotion on the first work day of the year was because they felt their year-end performance bonus was not enough. At the end of last year, Hyundai Motor gave its workers a bonus equivalent to 100 percent of their average pay. That’s because last year’s production volume of 1.62 million vehicles was 98.3 percent of their goal. If they had met their production target, they would have received a 150 percent bonus. Union and management representatives agreed upon the condition during last year’s pay negotiations.
But the union demanded the company pay them a 150 percent bonus, regardless of the performance. Taking into account lost output due to protracted labor strikes last year, Hyundai Motor had lowered its original output target of 1.78 million vehicles by 120,000. The reason unionized workers were unable to meet even the reduced output target was because, in addition to strikes over wages, they had downed tools 12 more times to take part in a broader strike by the umbrella labor group, Korean Confederation of Trade Unions.
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