Retrograde Thinking
Automakers’ labor unions are pushing ahead with their strike plans in spite of the ongoing economic recession, and some unions of major companies are even going so far as to demand strengthening of the provision for passing on their jobs to their sons and daughters. Their demand, in stark contrast to the public sector’s campaign for the job inheritance prevention as of late, is stirring up nationwide controversy.
The labor union of Hyundai Heavy Industries, which has been in collective wage negotiations with management since May, is demanding that the company hire one family member – that is, the spouse, son or daughter – of an employee within six months of the employee's retirement or death due to an occupational injury or disease.
This is much stronger than the current collective agreement provision in which one son or daughter is supposed to be employed in this case. “The talks are in slow progress due to the demand,” said the company, adding, “We assume it is somewhat excessive.”
Similar situations are found in other companies, too. For example, the collective agreement of GM Korea stipulates that direct family members of retirees, long-term employed persons, those deceased in office and those who retired due to inevitable causes should be hired preferentially. A repeal of the provision was rarely discussed during the talks between April and July, as the union and the management focused on such issues as ordinary wages.
The story is not much different for Hyundai Motor Company and Kia Motors, either. The former has the same above-mentioned clause as Hyundai Heavy Industries. In addition, it fills 25 percent of interviewees for new employment with the sons and daughters of its retirees and those who worked for it for at least 25 years, and gives them an additional 5 percent to their score. Kia Motors has similar clauses as well.
Back in May last year, in a lawsuit filed by the bereaved family of a deceased employee, the Ulsan District Court ruled that the job inheritance provision of Hyundai Motor Company is invalid. The management has refused to comply with the clause since then, but failed to abolish it in the collective negotiations of last year due to the hard-line stance of union members.
“Workers affected by industrial accidents have to be given monetary compensation according to the Industrial Accident Compensation Insurance Act and the Civil Law,” Korea University economics professor Kang Sung-jin explained, adding, “In any cases, passing on jobs corresponds to extreme egotism against the generally accepted social norm.”
In the meantime, state-run enterprises are repealing such provisions according to the government’s plan for public organization reform. The trend is based on the perception that special favors for certain employees and job seekers run counter to the common sense of society and result in lax management.