By Heekyong Yang

SEOUL (Reuters) -Hyundai Motor’s unionised staff in South Korea voted for attainable strike motion after talks with the corporate over wage will increase and an extension of the retirement age stalled, the automaker’s union mentioned on Monday.

The union, one of many largest within the nation with greater than 43,000 members, mentioned that nearly 90% of its members had accredited strike motion except the corporate accepts the union’s calls for.

A strike would mark the primary such motion in six years associated to wage negotiations on the South Korean carmaker and will disrupt manufacturing of some widespread autos at dwelling, which Hyundai has been exporting to offset its sluggish home gross sales.

“We are open to have negotiations with the management if they are willing to change their stance,” a Hyundai Motor (OTC:) union official instructed Reuters, including that the union plans to hold out working-level talks with the administration. The union and the administration had a complete of eight rounds of wage negotiations up to mid-June.

Hyundai Motor declined to remark.

Analysts mentioned it’s nonetheless too early to inform whether or not or not the union would truly launch a strike this yr, but when a strike takes place it could inevitably influence Hyundai’s short-term gross sales, particularly for the favored automobiles bought in the US, Hyundai’s largest revenue-generating market.

Analysts added that Hyundai Motor’s administration may use the automaker’s new U.S. plant, its largest funding outdoors South Korea, as bargaining leverage as a result of it may assist cut back Hyundai’s dependence on home manufacturing.

The union is looking for a minimal primary month-to-month pay improve of 159,800 received ($115.14) and efficiency pay equating to 30% of Hyundai’s 2023 web revenue. It’s also demanding a rise within the retirement age to 64 from 60, as South Korea’s rising life expectancy and insufficient retirement pension funds immediate calls for to have the ability to work for longer.

“Hyundai Motor’s union at home has always voted for strike action every year and this year is no different, however, the union might push a bit harder than previous years as the company has been doing well and the pandemic is long gone, so workers would like to push for bigger compensation this time,” mentioned Chang Moonsu, an analyst at Hyundai Motor Securities.

Whereas manufacturing disruptions at Hyundai’s home factories can be inevitable, administration would encourage staff not collaborating within the strike to work extra time to attenuate the influence, Chang added.

($1 = 1,387.9200 received)