'Now Is Not the Time to Stop': Hyundai Rotem management appeals to union for dialogue over strike

With Hyundai Rotem's labor and management failing to narrow their differences in this year's collective bargaining and declaring talks broken down, company executives have appealed to the union to seek a resolution through dialogue rather than confrontation. The message is that a prolonged labor dispute cannot be allowed at a time when the company needs to secure additional defense contracts, stabilize its rail business and invest in future growth.

Kim Ik-su, executive vice president and head of management support at Hyundai Rotem, sent a letter to employees Wednesday titled "Now is not the time to stop — it is time to move forward together."

"The company has continued to achieve meaningful results across several business areas recently, but there are still many challenges to address in order to translate current performance into long-term competitiveness," Kim said.

He said the defense business must secure additional orders to sustain its growth momentum, while the rail business — having finally escaped a prolonged period of losses and established a foundation of stability — must now consolidate that progress. Continued investment in research and development and production infrastructure was also cited as an ongoing priority.

Kim said a stable order base and sound profit structure are needed not only for the company's operating conditions but also to protect employees' job security and their workplace. "We have approached this year's wage negotiations with a serious awareness of these business realities," he said, adding that the company had sought "a balanced approach that takes into account both the company's operating conditions and improvements to employees' treatment."

Hyundai Rotem's labor and management held working-level negotiations from July 2 to 8, reviewing the union chapter's demands twice without reaching an agreement. At full-scale talks held Thursday, July 9, the company requested additional working-level negotiations, but the union chapter demanded a comprehensive package proposal from management and declared the talks broken down.

The union subsequently began procedures to secure strike rights, including filing for mediation with the labor relations commission. The union's position is that the recurring cycle of declared breakdowns and strike-right procedures must be broken, with negotiations refocused on the substance of wage bargaining.

Kim stressed that the breakdown of formal talks does not mean the end of dialogue between labor and management. "Even where there are differences in position, sufficient discussion and sincere consultation can lead to a direction both sides can accept," he said. "What is needed now is not to repeat the same arguments or escalate the conflict."

He added that the two sides must "identify the remaining issues in concrete terms and work out realistic alternatives," saying it was "time to sit down together again so as not to miss the golden time."

Kim also asked employees to view the current situation calmly and with a balanced perspective. "Now is the time to narrow the gap between labor and management through dialogue rather than confrontation, and to pool our wisdom toward a resolution," he said. "The company will continue to negotiate sincerely on all remaining matters to the very end, and will do its utmost to achieve both the company's growth and the job security of its employees."

Hyundai Rotem also faced a prolonged struggle during last year's wage and collective bargaining. After roughly six months of negotiations, labor and management reached a tentative agreement in December that included a monthly wage increase of 90,000 won ($60), a performance bonus of 450 percent plus 16 million won, and a 200,000-won Onuri gift voucher. The agreement passed a union membership vote with 59.38 percent in favor — a narrow margin.

At the time, Hyundai Rotem was posting record earnings, yet the wage and bonus package fell short of the previous year's agreement — which had included a 102,000-won wage increase and a performance bonus of 500 percent plus 18 million won — drawing considerable internal opposition. A union demand to address disparities in the wage calculation method based on hire date also went unresolved. With this year's talks collapsing early, there are concerns that longstanding grievances between labor and management could once again escalate into a prolonged dispute.

Hyundai Rotem's bargaining difficulties are one front in a broader wave of labor unrest spreading across Hyundai Motor Group. Following partial strikes by the Hyundai Motor union, major affiliates including Kia, Hyundai Mobis, Hyundai Transys and Hyundai Steel have also been escalating their campaigns over wages, performance bonuses and job security.