The union of Hyundai Motor Co. Tuesday declared its negotiations with the management over wages have collapsed, a move that could lead to a strike at the largest South Korean carmaker for five consecutive years.

The labor union immediately filed for labor dispute mediation with the National Labor Relations Commission. The carmaker’s unionized workers are set to vote next Wednesday on whether to go on strike.

If the commission rules suspended mediation, the union can call for a workout legitimately. The union is also likely to join a general strike to be organized by the Korean Metal Worker’s Union due on July 22.

The Hyundai Motor union demanded a 7.2 percent hike, or 152,050 won ($131.5), in basic salaries and 30 percent of the company’s net profit last year as bonus. But the management rejected the demand, saying the wage hike is impossible given poor business conditions. Both parties have met twice a week since May for wage talks.

Earlier, the commission ruled suspended mediation for workers at Hyundai Heavy Industries Co., the country’s largest shipyard. Hyundai Heavy employees will vote next week on whether or not to strike. If Hyundai Heavy workers participate in the July 22 strike, it would be a joint strike by Hyundai Motor and Hyundai Heavy Industries for the first time in 23 years.

“We will seek to join forces with Hyundai Heavy Industries by going on strike on the same day through the Korean Confederation of Trade Unions,” said Park Yoo-ki, head of Hyundai Motor’s union.

Strikes plagued Hyundai Motor for the last four straight years. The unionized workers have downed their tools every year since 1987, except in 1994, 2009, 2010 and 2011. In the past 29 years, a total of 414 days of strikes occurred, causing production disruptions of 1.27 million cars and sales losses of nearly 15 trillion won.

By Noh Won-myung, Seo Dae-hyun

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