Hyundai, Union Agree on Weekend Pay at Korean Plants

Hyundai and its workers union reach an agreement on weekend overtime pay and the union will allow its members to resume weekend work at all plants in Korea beginning the weekend of May 4.

A spokesman tells WardsAuto the union has accepted Hyundai’s offer of an average 225,000 won ($203) a shift for the back-to-back 8-hour day and 9-hour afternoon shifts on weekends.

The total weekend pay package of 450,000 won ($407) for both shifts is higher by 50,000 won ($46) than the auto maker’s first offer of 400,000 won ($361).

The Hyundai plants have been idle for eight consecutive weekends since March 9. The auto maker estimates the employees’ refusal to work on weekends has resulted in the loss of production of 56,000 vehicles valued at more than 1 trillion won ($904 million), the spokesman notes.

Hyundai affiliate Kia has not yet reached an agreement on weekend work. A spokesman tells WardsAuto that while employees have not been performing weekend work at the Sohari and Hwasung car plants, they have been working consistently on two 8-hour weekend shifts at the Gwangju commercial-vehicle- and bus-production plant.

The Sohari factory, Kia’s original production facility, produces the Carnival minivan, Rio subcompact and K-9/Qoris fullsize sedan. The newer Hwasung plant builds the K3/Forte compact, K5/Optima midsize sedan, Sportage crossover SUV and Carens/Rondo MPV.

The spokesman says Kia will not release details of the weekend pay amounts being discussed or production losses at Sohari and Hwasung since March 9.

GM Korea also is in negotiations regarding compensation for weekend work. No agreement has been reached, a spokesman tells WardsAuto.

“The company and its labor union are still under discussion to implement the back-to-back 2-shift working system, which is to be implemented beginning in 2014,” the GM Korea spokesman tells WardsAuto. “The company ran a back-to-back 2-shift system for two weeks from March 11 to 21 as a trial.”

GM Korea will not discuss the weekend pay amounts that are being negotiated.

A source at the Korea Metal Workers Union, the umbrella union with branches representing workers at all three auto makers, says the union is seeking uniform compensation at all three of the companies. It is expected the weekend pay agreement at Hyundai will set the pattern for both Kia and GM Korea, he says.