The South Korean government is considering taking emergency arbitration measures to put an end to a strike staged by unionized workers at Hyundai Motor Co. that has led to major setbacks in vehicle production.

Lee Ki-kweon, minister of employment and labor, said on Wednesday that the government will do everything it can within law and system to end the strike if the management and labor union of the country’s largest automaker are not able to come to terms immediately and the production stoppage following a series of partial and full-day walkouts continues, causing harm to the country’s economy and job creation.

If the government takes an emergency medication procedure to end the strike, it would be the first time for it to intervene to settle the labor dispute at a private company in 12 years. The government had taken emergency mediation actions four times so far to end the strike staged by unionized workers at Korea Shipbuilding Corporation in 1969, Hyundai Motor in 1993, and Asiana Airlines and Korean Air Lines pilots, each, in 2005.

Under existing law, the labor minister can invoke an emergency arbitration right to end a strike if such a unionized walkout is deemed to either put people’s daily lives at risk or bring harm to the national economy. After an emergency mediation action is invoked, the labor union is required to suspend strike for 30 days while the National Labor Relations Commission begins adjustment. If adjustment fails, the commission head can enforce an arbitration award that holds the same power as a collective agreement.

Hyundai Motor’s labor union on Monday staged a full-scale walkout for the first time in 12 years, paralyzing production plants at home. The full-day walkout came after the labor and management failed to agree on wage terms with the union asking for more concessions and the labor union workers have staged partial workouts at the automaker’s factories across the country, which is the automaker’s largest production hub.

Labor Minister Lee said Hyundai Motor’s labor union has gone into not only an all-out walkout for the first time in 12 years but also 22 partial strikes for the last 72 days since July 19 that have led to lost vehicle production of 121,167 units worth 2.7 trillion won ($2.5 billion) as of Wednesday.

Lee also condemned the production stoppages at Hyundai Motor following a series of walkout for causing a combined loss of 1.3 trillion in sales at 380 primary suppliers to the country’s largest automaker as the labor unrest at Hyundai Motor has led its small- and mid-size suppliers to stand idle without any other options, which means production and wage losses at those suppliers.

Hyundai Motor shares closed down 2.1 percent at 138,500 won on Tuesday.

By Ko Jae-man

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]