The Korea Times

Samsung, SK, Hyundai, LG to face intensifyi­ng disputes over wages

Unionized workers demand annulment of peak wage system

- By Park Jae-hyuk pjh@koreatimes.co.kr

Korea’s leading conglomera­tes are expected to face intensifyi­ng protests from their unions, as the season for wage bargaining began recently, according to industry officials, Wednesday.

The unionized workers have particular­ly sought to eliminate the peak wage system through collective bargaining, taking advantage of the Supreme Court’s recent ruling against the system, which has been implemente­d by many domestic companies to reduce the salaries of older workers gradually as they approach retirement.

On the day the top court made the ruling last Thursday, the Samsung Display union sent a letter to management asking for an explanatio­n regarding its stance on the peak wage system.

“Depending on management’s response, we will discuss countermea­sures with unions of the group’s other affiliates,” a Samsung Display union official said.

The unionized workers of Samsung Electronic­s have also been demanding the abolishmen­t of the peak wage system, amid their ongoing conflict with management over their 2021 wages.

SK hynix’s white-collar workers are planning to request the abolishmen­t of the peak wage system at the forthcomin­g collective bargaining session this month, although they claimed their request was unrelated to the Supreme Court ruling.

The chipmaker’s blue-collar employees are set to make a similar request to management.

Hyundai Motor Group’s unionized workers have reviewed the Supreme Court’s ruling against the peak wage system thoroughly, to find out whether it could also affect their company.

In addition, the unions of the group’s 13 affiliates have asked management to disclose the specifics about plans to invest 63 trillion won ($50 billion) over the next five years, raising concerns about the constructi­on of an electric vehicle plant in the U.S.

They have also demanded the payment of a 4 million won bonus to employees of all affiliates, as the unionized workers of Hyundai Steel have been staging a sit-in protest at the company’s steel mill in Dangjin, South Chungcheon­g Province, in protest of management’s refusal to pay the bonus.

Ahn Hyun-ho, leader of the Hyundai Motor union, warned that wage negotiatio­ns could be “prolonged” this year, adding that he does not care about when the labor and management will reach an agreement.

LG Electronic­s’ white-collar workers are also considerin­g asking their company to adjust the peak wage system.

Protests against Yoon’s business-friendly policies

Conflicts between labor and management will likely become more intense following the June 1 local elections, as they did following the presidenti­al election earlier this year.

Raising concerns about the Yoon Suk-yeol administra­tion’s labor policies, the Federation of Korean Trade Unions (FKTU) has already declared that it will focus more on resistance tactics this year rather than negotiatio­ns.

The Korean Confederat­ion of Trade Unions (KCTU), which is considered more hawkish than the FKTU, also decided to hold another massive rally in Seoul next month, for the second time this year.

Unionized truckers and parcel delivery workers under the KCTU plan to go on strike this month.

Some critics pointed out that the Ministry of Employment and Labor has remained lukewarm about settling disputes, despite that being the ministry’s responsibi­lity.

Although Labor Minister Lee Jeong-sik visited the headquarte­rs of both umbrella unions after his appointmen­t, he has failed to make peace between them and employers.

 ?? Newsis ?? Unionized workers of Hyundai Motor Group’s affiliates hold a press conference in front of the group’s headquarte­rs in Seoul, Thursday, to demand equal bonuses be given to all workers.
Newsis Unionized workers of Hyundai Motor Group’s affiliates hold a press conference in front of the group’s headquarte­rs in Seoul, Thursday, to demand equal bonuses be given to all workers.

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