Hello, I’m daddy with two daughters.I’m working in a busy department in the second half of the year, so I’m feeling very sick due to the continuous night shift. Please take care of your health, neighbors.In our case, my wife is interested in American stocks and I am interested in Korean stocks. The reason why I am very interested in Korean stocks is that I want to invest in a company that I know very well that I can use directly in my daily life and easily. Still, there are some stocks that monitor the stock price flow and never press the acquisition button even if they are interested. It is a stock of Hyundai Motor Group. The reason is because of Hyundai Motor Group’s biggest risk, the labor union.
Kia’s labor union will go on strike again after two years. This is because they failed to reach a compromise with the company in the so-called “lifetime employee ID” collective agreement discussion, which includes discounts when purchasing vehicles after union members retire.The Kia union is on strike to reduce the welfare of retirees. Kia Motors has provided employees who have worked for more than 25 years with a 30 percent discount for life if they buy a car every two years.
What surprised me when I read today’s article is that so far, retirees have been given a 30% discount when they buy a car once every two years. If we eliminate the benefits and implement shareholder-friendly policies, the stock price of Hyundai Motor will not be the current price.Basically, if you buy a 30% DC car, you can get a new car once every two years without spending money even considering the depreciation rate of the car, and I think you can get more money when the price of used cars themselves is going up like these days. The labor-management negotiation team agreed to limit the provision of discount benefits to 75 years of age as the risk of traffic accidents increases for older drivers, while increasing the discount cycle to three years and lowering the discount rate to 25 percent. Instead, the government has decided to strengthen the welfare of those in office along with the highest wage increase ever. The agreement was rejected due to opposition from some union members. After the rejection, the company offered additional benefits such as higher vacation costs, but the union refused to accept the offer.
It seems that there was a backlash when I reduced the existing benefits, but I can’t relate to it. Of course, I think it is right that welfare should go to those who actually work rather than those who retire, but it seems that there is no end to the greed of union members.
When I worked as a brand marketer in the automobile industry, I was always amazed by the commercial quality of Hyundai/Kia Motors. In particular, the optional technology of Hyundai and Kia Motors is so advanced that three German companies are catching up. Also, production-retail prices are relatively low. And thanks to the success of Genesis, a premium brand that Hyundai Motor is struggling with, the value of Hyundai Motor has risen significantly not only in domestic demand but also globally. Based on the number of units sold by manufacturer, it ranks third in the global market as of the first half of 2022.
Sales volume by manufacturer in the first half of FY2022
No matter how good the product is and how well the distribution network is built, Hyundai Motor will have to turn a blind eye to its shareholders as long as the “cross-line labor union,” which is the biggest risk, continues. in order
Of course, because of the labor union, employees like me are able to enjoy the annual salary increase and welfare benefits, and I am grateful to some extent.However, I think it is important not to cross the line all the time. It’s the same in any field, but if you go beyond the “basic line,” you can’t relate to it and you become the target of criticism.Hyundai Motor Group is unlikely to have a bright future unless it solves union risks.I’m going to end posting today with a better tomorrow than today.Thank you.
Photographic Unsplash by Dawid Maeecki
Photographic Unsplash by Dawid Maeecki
