Hyundai Motor’s Chung Says Labor Disputes Must Consider Shareholders, National Development

Hyundai Motor Group Executive Chair Euisun Chung said recent labor-management conflicts over performance bonuses should be judged with broader considerations in mind, including shareholder interests and national development.

Speaking to reporters ahead of a town hall meeting at the group’s headquarters in Seoul’s Yangjae-dong on May 14, Chung said South Korea has not spent long as a capitalist society since the Korean War and appears to be going through a range of challenges. He added that if labor and management build relations wisely, it could become an opportunity to move ahead globally.

Samsung Electronics’ union has recently threatened a strike while sticking to its demand for performance bonuses equal to 15% of operating profit. Unions at Hyundai Motor Co. and Kia Corp. have proposed even bigger payouts, calling for bonuses worth 30% of net profit. Such demands to fix performance pay as a set share of earnings are spreading among unions at major conglomerates.

Asked how he would deal with union issues, Chung said Hyundai Motor Group has also had ups and downs in labor relations but has always chosen the right path for the company’s development. He added that the group would resolve the issue wisely.

Asked what matters most as the group shifts toward becoming a robotics company, Chung said the company’s top priority is to help hardware and software engineers work actively and come up with good ideas.

Kim Woo-seop and Jung Sang-won, Hankyung.com reporters duter@hankyung.com