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Hyundai Motor has decided to file a 1 billion won damage suit against its labor union, including 25 high-ranking officers, for demanding a higher bonus and refusing overtime work. The automaker says it will continue to file additional damage suits if the union keeps rejecting overtime work and intensifies protests, leading to mounting production losses. Hyundai has already filed charges against 22 union members who disrupted the company¡¯s new year opening ceremony. Hyundai says it will change any practice that goes against the company¡¯s principles.
Until now, Hyundai Motor has filed nine different damage suits against its labor union for launching unauthorized strikes. Among them, the largest one was a W300 million. But the management made a habit of compromising the principle and gave in to the union demands in the course of negotiations. Hyundai Motor reneged on its own ¡°no work, no pay¡± policy, by awarding one bonus after another to the union.
Hyundai Motor is now vowing not to break the principles for any reason. The 1 billion won lawsuit is a symbolic warning ahead of more potent actions in the future, and the company says it will not hesitate to file damage suits in the tens of billions of won. In other words, the company is saying it will not get slapped around by its union.
A damage lawsuit is the most efficient way for an employer to deal with illegal strikers. In 2005, during the New York City transit union strikes, the city sued unionized workers for damages amounting to a million dollars a day for illegal labor action. Striking unionists returned to work three days later.
Today, Hyundai Motor is not only losing price competitiveness, it¡¯s facing a crisis situation amid increasing competition. There are reportedly 100,000 unsold vehicles parked in lots outside of its U.S. plants. There is no way the company can emerge from this crisis without union and management officials reestablishing a new framework within the boundaries of common sense. The reason why Hyundai is taking such an unprecedented action against its union is probably because of the seriousness of the situation the company is facing. If Hyundai Motor once again commits an act that defies common sense, then neither consumers nor public opinion will support the company any more.
(englishnews@chosun.com )
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