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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Hyundai Motor Group has strengthened its labor management structure by elevating its top labor leadership role from vice president to president level, as labor-related risks intensify following recent legal changes.
According to industry sources on May 8, the group appointed Choi Joon-young as head of policy development, the group’s labor control tower. The role—previously held by a vice president—has been upgraded to president level, signaling Hyundai’s intent to manage labor risks at the highest level. Choi, formerly in charge of domestic production and Chief Safety Officer (CSO) at Kia, is credited with achieving five consecutive years of wage negotiations without strikes.
Hyundai also introduced a new vice president-level labor policy position at affiliate Hyundai Mobis, upgrading the function from an executive-level role. The move is aimed at proactively managing labor issues at parts subsidiaries before they impact vehicle production.
The restructuring comes after the enforcement of revisions to Korea’s labor law in March, which broaden the definition of “employer” and expand the scope of strike actions. Since the law took effect, subcontractor unions have increasingly demanded direct negotiations with parent companies, significantly raising labor uncertainties.
Hyundai Motor Group has already faced pressure from subcontracted workers at its Ulsan plant, with unions warning of a potential general strike if the company refuses to engage in negotiations.
Industry-wide, similar pressures are emerging. Labor authorities recently recognized Hyundai Steel as an employer in relation to subcontracted workers, while POSCO has begun collective bargaining with subcontractor unions. In logistics, CJ Logistics is also bracing for potential direct bargaining demands from delivery drivers.
Analysts say Hyundai’s move reflects a broader shift toward strengthening labor risk management at the group level to ensure operational stability amid evolving regulatory and union dynamics.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
https://www.alphabiz.co.kr/news/view/1065586618880259
This article is based on global economic content from Alphabiz, which distributes English-language news on Korean markets and companies to international audiences.
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