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Home / case studies / Case study: How Hyundai promotes labour-management relations

Case study: How Hyundai promotes labour-management relations

As a leading global automaker, Hyundai respects the diversity of hundreds of thousands of employees around the globe, providing equal opportunities and fair compensation.  Tweet This! Accordingly, Hyundai complies with international regulations on human rights protection and with all labour-related laws and regulations of the individual countries in which it operates.

This case study is based on the 2017 Sustainability Report by Hyundai published on the Global Reporting Initiative Sustainability Disclosure Database that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Layout 1Abstract

Hyundai seeks to enhance its corporate image by establishing a sound organisational culture and by actively responding to labour-related laws and policies, both in Korea and overseas. In order to promote labour-management relations Hyundai took action to:

  • promote labour-management communications
  • develop healthy overseas employee relations

What are the material issues the company has identified?

In its 2017 Sustainability Report Hyundai identified a range of material issues, such as product and service quality, improving financial stability, ethics/compliance management, developing eco-friendly products. Among these, promoting labour-management relations stands out as a key material issue for Hyundai.

Stakeholder engagement in accordance with the GRI Standards

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The organization should identify its stakeholders, and explain how it has responded to their reasonable expectations.”

Stakeholders must be consulted in the process s of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Hyundai engages with:

To identify and prioritise material topics Hyundai engages with its stakeholders through the following channels:

Stakeholder Group                Method of engagement
Customers/Dealers

 

·      Motor show and new car launching ceremony

·      Test driving

·      Sports sponsorship

·      Customer service

·      Customer satisfaction survey

·      Car club

·      Before Service

·      Website

·      On-line communication

·      Dealer seminar/conventions/events

·      Agent conventions

·      My Car Story 2.0

·      Stakeholder interviews

·      Reports (financial reports, sustainability reports, etc.)

Employees

 

 

·      Labor-Management Council

·      Occupational Safety and Health Committee

·      Internal publications

·      Newsletters

·      Employee satisfaction surveys

·      WorkSMART assessments

·      Health & safety systems

·      Websites

·      Stakeholder interviews

·      Sustainability reports

·      Roundtable meetings

·      Management workshops

·      Lunch meetings

·      Grievance counseling

·      Suggestion Box

·      Home correspondence

·      Events with employee families

·      Sports events

Suppliers ·      Win-win growth and fair trade agreement

·      Foundation of Korea Automotive Parts Industry Promotion

·      Seminar and training for suppliers

·      Stakeholder interview

·      Energy-Saving Technology

·      Exchange Meeting

·      R&D Tech Day

·      R&D symposium

·      R&D Motor Show

·      Purchasing portal

·      Reports

Shareholders/Investors ·      Annual general meeting

·      Corporate Governance & Communication Committee

·      Company briefing

·      IR meetings

·      Website

·      Reports

Society ·      Communication with local communities near worksite

·      Youth support program

·      Website

·      Stakeholder interview

·      Reports

Government ·      Participation in policy-making public hearings

·      Participation in policy discussions and briefings

·      Website

·      Stakeholder interview

·      Reports

What actions were taken by Hyundai to promote labour-management relations?

In its 2017 Sustainability Report Hyundai reports that it took the following actions for promoting labour-management relations:

  • Promoting labour-management communications
  • Hyundai guarantees employee rights to organise labour union activities, to take collective actions and to exercise collective bargaining. In Korea, 48,150 employees or 72.0% of Hyundai’s total workforce are, since 2016, members of the ‘Hyundai Chapter of the Korean Metal Workers’ Union’. In 2016, the Labor Management Council developed measures to provide a better working environment for Hyundai’s employees, including improving the cafeterias and work uniforms. In addition, the collective negotiations in 2016 brought labour and management together to seek sustainable growth by signing agreements to support Hyundai’s response to the ever-changing landscape of the automobile industry, including the Labor-Management Future Development Strategy Committee and an agreement on eco-friendly vehicles. Additionally, Hyundai holds regular briefing sessions to build a consensus between labour and management.
  • Developing healthy overseas employee relations
  • Hyundai complies with all overseas labour-related laws and regulations, and guarantees and respects the legal right to take collective actions and exercise collective bargaining. BHMC (Beijing Hyundai Motor Company) and CHMC (China HyundaiMotor Corporation) in China have public assembly organisations, and HMI (Hyundai Motor India) in India and HMMC (Hyundai Motor Manufacturing Czech) in the Czech Republic each have their own labour unions, to represent the voices of employees. Workers at HMB (Hyundai Motor Brazil), Hyundai’s Brazilian subsidiary, joined the local labour union in the early stage of its existence, and the company maintains strong employee relations (ER). Although HMMA (Hyundai Motor Manufacturing Alabama) in the U.S., HMMR (Hyundai Motor Manufacturing Rus) in Russia and HAOS (Hyundai Assan Otomotiv Sanayi) in Turkey have no labour unions, they address staff requests through round-table meetings, employee committee activities and other regular activities. In 2016, Hyundai’s headquarters selected best practices in ER on a regular basis and rewarded them, to encourage overseas subsidiaries to better manage their ER.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standards addressed in this case are:

1) Disclosure 403-4 Health and safety topics covered in formal agreements with trade unions

2) Disclosure 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

 

Disclosure 403-4 Health and safety topics covered in formal agreements with trade unions corresponds to:

  • Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Business theme: Occupational health and safety

Disclosure 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk corresponds to:

  • Sustainable Development Goal (SDG) 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Business theme: Freedom of association and collective bargaining

 

80% of the world’s 250 largest companies report in accordance with the GRI Standards

SustainCase was primarily created to demonstrate, through case studies, the importance of dealing with a company’s most important impacts in a structured way, with use of the GRI Standards. To show how today’s best-run companies are achieving economic, social and environmental success – and how you can too.

Research by well-recognised institutions is clearly proving that responsible companies can look to the future with optimism.



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References:

1) This case study is based on published information by Hyundai, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) http://www.fbrh.co.uk/en/global-reporting-initiative-gri-g4-guidelines-download-page

3) https://g4.globalreporting.org/Pages/default.aspx

4) https://www.globalreporting.org/standards/gri-standards-download-center/

Note to Hyundai: With each case study we send out an email requesting a comment on this case study. If you have not received such an email please contact us.

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