11 Year Fruition
The labor union and the management of Hyundai Motor Company succeeded in reaching a tentative agreement in their talks over the conversion of in-house subcontract workers into permanent employees. This is expected to be a breakthrough for resolving the temp issue that has lasted for over a decade. Although the Ulsan branch of the workers’ group left the negotiation table with discontent, the tentative agreement concluded on August 18 between the management and the Asan and Jeonju branches is predicted to become a starting point for the establishment of a new labor ecosystem.
Both of the parties disclosed the details of the agreement in the near future, allowing for the sensitivity of the issue. It is guessed that the announcement will cover when to change the temporary positions to permanent ones and the number of beneficiaries. According to the most recent plan, the number will reach 3,500 by the first half of 2016. The agreement will be put into immediate implementation once the Asan and Jeonju branches vote for it.
“The agreement at this time is especially meaningful, in that the workers can get an opportunity for stable employment, and the employers can be supplied with excellent manpower with abundant experience and job skills,” the company explained.
In the meantime, the ruling of the first trial of the class action suit filed by 1,941 (1,500 or so now) temps of Hyundai Motor Company is scheduled to become available on August 21 and 22. The case was brought to the Seoul Central District Court back in November 2010. The final ruling took years, though, and the case is extremely complicated because the conditions of each of those participating in the litigation were different. It is said that the two parties agreed to address the problem on their own because of this reason.
At present, approximately 500 in-house temps of Kia Motors, some in GM Korea, and about 1,000 employees belonging to firms providing after-sales service for Samsung Electronics products are engaged in similar lawsuits. This is why the entire business and labor communities are fixing their eyes on the tentative agreement.
“The agreement could become a chance to improve the indirect hiring practice of not just the auto industry but also a variety of other sectors,” said an industry insider, adding, “It will result in a better employment system based on mutual consent as a desirable precedent for job quality enhancement.”