It has been reported, in the local Korean papers, today that negotiations between the Hyundai Motors Union and Hyundai Management have ended without a deal. The union reported that they would not budge on the basics of their proposal.
The union has been demanding the increase of the retirement age to 61 (Korean law mandates a minimum retirement age of 60 by 2016), a pay raise, shorter working hours and an increase in some basic benefits.
Hopefully, the union and management realize that these situations make Korea look like a not so business-friendly destination. Another strike would have a very harmful impact on the image of Korea in the minds of companies that are considering destinations for investment.
Korea is increasingly struggling to obtain FDI with labor being one of the major red flags for investors.
Sean Hayes may be contacted at: SeanHayes@ipglegal.com.
Sean Hayes is co-chair of the Korea Practice Team at IPG Legal. He is first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty.