[Alpha Biz=(Chicago) Reporter Kim Jisun] Strike war clouds are hanging over the Hyundai Motor Group.

Hyundai Motor's labor union has declared a breakdown in wage and collective negotiations this year and has begun preparing for a strike, while parts makers such as Kia and Hyundai Mobis are also at odds with the management.

According to industry sources on the 21st, Hyundai Motor's labor union declared the breakdown of the wage and collective agreement at the 17th round of negotiations held at the main building of its Ulsan plant on the 18th. There have been 17 rounds of negotiations since June, but they have not narrowed the gap.

The union argues that the management should come up with a package of proposals for wage hikes, performance-based bonuses and various allowances.

Hyundai Motor's labor union is demanding that the basic salary be raised by 184,900 won this year (excluding salary increases) and 30％ of the previous year's net profit (including stocks) be paid as performance-based bonuses. It also claimed that bonuses of 900％ and allowances were realized. There is also a proposal to extend the retirement age, currently 60 years old, to a maximum of 64 years old in conjunction with the timing of receiving the national pension.

Hyundai Motor, on the other hand, said, "It is too early to present it in a package," adding, "We need to sort it out to some extent before we can present it in a package, so let's proceed with further negotiations."

The labor union filed an application with the National Labor Relations Commission to coordinate the dispute and plans to hold a temporary meeting of lawmakers on the 23rd to set the direction for the strike. It will then vote for and against the strike for all union members on the 25th. In particular, the vote will be carried out via mobile electronic voting, which is expected to automatically count at the end of the vote.

Kia had four main negotiations and four working-level negotiations until the 17th, starting with a meeting between the families of the bride and the bridegroom on the 6th of last month, but failed to reach an agreement. Kia is demanding a 184,900 won increase in basic salary (excluding salary raise) and a 30％ bonus payment of operating profit.

Hyundai Mobis also has a deep conflict between labor and management. This is because there was earlier controversy over discrimination against Hyundai Motor over its special performance-based pay. Hyundai Motor and Kia paid 4 million won in special performance pay to all employees in commemoration of achieving their biggest management performance last year. Hyundai Mobis received less than 3 million won. In response, the union went on a sit-in protest to pay the same incentive. Conflicts are expected as the union intends to win a shortage of special incentives at this year's wage and collective agreement.

Hyundai Mobis' newly launched module and parts company branch in November last year has not been able to reach an agreement.

 

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