By Jhoo Dong-chan



Unionized workers at Hyundai Motor and Hyundai Heavy Industries (HHI) are expected to go on strike on July 20.



Hyundai Motor workers announced earlier this month that they will participate in a two hour meeting organized by the Korea Confederation of Trade Unions (KCTU) Ulsan chapter with regard to taking industrial action; and their counterpart at HHI is reportedly considering joining them.



If HHI workers participate, a strike by Ulsan's two largest unions is expected to be the first of its kind in 23 years since they struggled together for better wages in 1993.



"Wage negotiations with the company have broken down. A strike is now our only option," Park Yoo-ki, head of the Hyundai Motor union, told his fellow workers after the negotiations, Friday.



"Unionized workers at HHI are also fighting against their management's restructuring plan that includes massive layoffs. We will fight together to protect our rights."



The two trade unions had been part of the Hyundai Group umbrella union with 30 other groups struggling together for wage increases and changes in employment rules since 1990.



However, workers at HHI decided to withdraw from the KCTU as well as the Hyundai Group umbrella union in 2001.



"Workers in Ulsan will be united in a struggle once again if HHI workers join," said a Hyundai Motor unionist. "We will fight for their cause as well. We won't budge in our struggle this time."



Declaring a breakdown in wage negotiations, the Hyundai Motor union will hold a vote on the strike Monday.



Unionized workers at HHI already launched a walkout last month.



"The company did not sincerely cooperate with workers in this year's wage negotiations but pushed for its layoff plan," said HHI union head Baek Hyung-rok.



"HHI, which is said to have the strongest finances of the three biggest shipbuilders, is pushing the toughest plan. The despair of laborers in the area is turning to rage."



Such moves by unionized workers are expected to face strong opposition not only from the business circle but also the public due to the struggling domestic and export market and the shipbuilder's embattled efforts for management normalization.



"It is regrettable that the unionized workers have decided to stage a walkout regardless of the two companies' situations," said an Ulsan citizen.



"They are two of the most highly paid worker groups in the country. Staging a massive rally when the economy and the companies are struggling to survive is just a selfish decision."



Market experts also express their concern over the possible strike.



"I think it is the time for crisis management, not a strike," an expert said.



"Especially since one of the baseline conditions creditors demanded for HHI's restructuring plan was the union's cooperation. If they persist in staging a walkout, creditors may halt ongoing efforts to salvage the firm."



HHI announced a self-rescue plan that includes asset sales and a cut in the workforce to save 3.5 trillion won. Under the shipbuilder's self-rescue plan, temporarily approved by its creditors and led by KEB-Hana Bank, it will sell stock investments, non-core assets and cut its workforce, which will reduce its debt-to-equity ratio to below 100 percent by 2018.



