[Edaily Reporter Kim Hyung-wook ] Although the number of labor-management disputes has decreased this year, the number of workdays lost due to strikes and other factors has increased by more than 45%, according to statistics. This is attributed to ongoing labor-management conflicts centered on major workplaces in the automotive and shipbuilding industries, as well as prolonged disputes at key parts suppliers.

According to the report titled “Current Status of Labor-Management Relations in Major Manufacturing Sectors, Including Automotive and Shipbuilding,” released on the 8th by the Korea Employers Federation (KEF), the number of labor disputes through the end of September this year stood at 88—a decrease of 11 cases (11.1%) from the 99 cases recorded during the same period last year. However, the number of workdays lost rose by 45.2%, from 336,800 to 489,190.

This is due to repeated partial and full-scale strikes at major workplaces such as HyundaiMotor, HD HYUNDAI HEAVY INDUSTRIES, and Hanwha Ocean. HyundaiMotor experienced labor-management conflicts of varying severity until the end of negotiations in late August, while HD HYUNDAI HEAVY INDUSTRIES and Hanwha Ocean faced similar issues on October 27 and 29, respectively, leading to industrial damage. According to industry estimates, this year’s strikes at HyundaiMotor have caused production losses of approximately 55,200 vehicles and revenue losses of at least 2.3 trillion won.

Labor-management conflicts are still ongoing in the auto parts industry. The HL Mando union (Mando Branch of the Korean Metal Workers’ Union) has been refusing to work overtime or special shifts since the 9th of last month, and on the 28th of last month and the 2nd of this month, it held partial strikes lasting two hours per work shift. The union has also announced plans for selective strikes.

Since HL Mando supplies core components such as braking, steering, and suspension systems to automakers, a prolonged conflict could have further repercussions on the supply chain. As of last year, there were 292 suppliers doing business with HL Mando’s domestic facilities, employing a total of approximately 40,880 people. HL Mando’s annual procurement expenditure amounts to approximately 1.5 trillion won.

The Korea Employers’ Federation has identified the key characteristics of this year’s labor-management conflicts as the spread of demands for N% performance-based bonuses directly linked to corporate performance and the increasing burden of fixed labor costs and workforce management beyond short-term performance-based payments. Following the agreement between SK hynix and SamsungElectronics on N% performance bonuses, demands have poured in from companies such as HyundaiMotor and HD HYUNDAI HEAVY INDUSTRIES to pay employees a certain percentage of net income or operating profit directly.

At HL Mando, where labor-management disputes remain unresolved, the union is demanding that 15% of operating profit be regularly paid as a special bonus, along with an extension of the retirement age without wage cuts and the replacement of employees lost through natural attrition with regular employees within two months.

The Korea Employers Federation stated, “If demands that increase fixed labor costs and workforce management burdens—in addition to demands for performance-based distributions linked to corporate profits—become institutionalized, it could make it difficult for companies to respond during an economic downturn,” adding, “We must consider not only short-term performance but also the impact on global competition, future investments, and suppliers.”