[asia-apec 573] KCTU and Hyundai

[PAN Asia Pacific]

     KCTU====================================KCTU

             Korean Confederation of Trade Unions

                          KCTU Action Alert
                           August 21, 1998

     KCTU====================================KCTU




                  Settlement at the Hyundai Motors Stalled
           By Management's Refusal to Accept A Compromise
                 Created by Union's Most Painful Decision


In late afternoon of August 21, 1998, Mr. Noh Moo-hyun, the vice-president
of the ruling National Congress for New Politics, the leader of the
mediation team, announced to the press that the intransigence of the
management is the only obstacle remaining in the peaceful settlement of the
current dispute at the Hyundai Motors.

He told the press that the Hyundai Motors Workers Union had given positive
response to the final proposal put to the union by the ruling party's
"Mediation Team".

He declared that this was the most critical decision made by the union which
had until then insisted that an arrangement for cost reduction demanded by
the management can be produced without resorting to "redundancy dismissal".

Mr Noh explained that the central aim of the "Mediation Team" when it first
arrived in Ulsan was to find ways to persuade the union to accept
"redundancy dismissal". He admitted that he understood the pain it must
cause the union to accept the "idea" of agreeing to the dismissal of the
fellow workers.

He declared, now that the union has accepted the mediator's proposal in
principle, that there was no further role left for the mediation team and
that the choice was now with the management.

All that was left to settle the situation, he explained, was the decision by
the management to accept the mediators' proposal. He also expressed that
there would be no one who can justifiably call in the police troops to end
the situation.

The proposal the mediation team put to the union and the management of the
Hyundai Motors in separate meetings -- after the three-party negotiations
failed to proceed due to the management's procrastination -- calls for
"redundancy dismissal" of 200 to 300 workers out of the some 1,500 workers
the management had originally wanted to terminate. The remaining 1,200 to
1,300 workers would be given 6-month leave without official wage with 6
month in-house skills training at the end of the 6-month leave. Employment
Retention Assistance Fund of the Employment Insurance could be utilised to
finance the 6-month leave and the in-house training. The proposal also calls
for the creation of an "employment stabilisation fund" by the equal
contribution from the management and the labour. This fund is to be used to
provide subsidies to the workers on leave.

If the proposal is finally adopted, the management must give the first right
of employment for the dismissed workers.

The conclusion of the dispute would be followed by a joint declaration for
industrial peace and cooperation and a commitment by the management to
withdraw all civil suits -- and state's criminal action -- taken against the
unionists.

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     Yoon Youngmo
     International Secretary
     KCTU
     email: inter at kctu.org
     fax: +82-2-765-2011
     tel.: +82-2-765-7269
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