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| 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 demand abolishment of peak wage system
By Park Jae-hyuk
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 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 will 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.
