Eunsung Motors Pyeongtaek Factory.
Vehicles being produced moved along the conveyor belt, and workers assembled parts with quick hand movements.
Bang Mu-hyuk and Jo Min-seok worked facing each other across the conveyor belt, on the right and left respectively. The work they did was almost identical.
The difference was that Bang Mu-hyuk assembled the right wheel, and Jo Min-seok assembled the left wheel.
However, the difference in their wages was more than four times.
The reason is that their status is different. Bang Mu-hyuk is a permanent employee of Eunsung Motors. On the other hand, Jo Min-seok is a dispatched worker. He works at the Eunsung Motors factory, but he belongs to a dispatch company, not Eunsung Motors. He also received his salary from the dispatch company.
Bang Mu-hyuk’s annual salary was well over 100 million won, but Jo Min-seok’s annual salary was less than 30 million won.
After deducting the commission for the dispatch company, the actual money in hand is just over 2 million won per month.
Jo Min-seok smiled bitterly.
‘This is probably the difference between permanent and non-permanent workers.’
It’s by no means a high wage, but there are people lining up to work even for this money. Compared to his friends who still haven’t found jobs, just being in this position now could be considered lucky.
When break time came, Jo Min-seok came outside and smoked a cigarette in the smoking room. As he sat down to wipe away sweat, Bang Mu-hyuk approached and offered him a canned coffee.
“Have one of these.”
“Yes. Thank you.”
Jo Min-seok politely accepted it with both hands.
Bang Mu-hyuk sat down next to him and took out a cigarette.
“It’s tough, isn’t it? Car factories aren’t easy places.”
“Ah, yes.”
‘Considering that, isn’t automation pretty well done?’
He had moved from factory to factory before coming here. Of course, it’s not like it’s not hard, but it’s incomparable to small and medium-sized company factories.
At least large company factories definitely keep the legally mandated break times.
“Next week is your first paycheck, huh? What are you going to do when you get it?”
“I still have a lot of student loan debt left. I have to pay that all off first.”
“Oh, I see. Which university did you say you graduated from?”
“I graduated from Cheongsang University.”
Cheongsang University is a local university located in Chungbuk Province. Well, if he had graduated from a prestigious university, he wouldn’t be working like this for this salary.
At those words, Bang Mu-hyuk’s face brightened.
“Ah! Really? My son also goes to Cheongsang University. Now that I see it, you’re my son’s senior. How long has it been since you graduated?”
“It’s been 3 years now.”
“I see. My son is also slowly graduating next year.”
As far as Jo Min-seok knew, Eunsung Motors permanent employees could receive tuition support for their children from the company. (If their children do not go to university, they give it in cash).
‘Still, he probably doesn’t have student loan debt.’
So he won’t have to struggle with debt as soon as he enters society, unlike someone else.
As break time was about to end, a union member approached and said, clapping his hands.
“Alright, everyone! You know we’re working until 2 PM today, right? When the time comes, everyone stop work and evacuate!”
“Yes, sir!”
Unlike the permanent employees who answered energetically, the expressions of Jo Min-seok and the non-permanent employees were dark.
Currently, the Pyeongtaek factory is undergoing partial strikes with Team 1 and Team 2 taking turns. Permanent employees get their base salary paid regularly even if they go on strike, but non-permanent employees do not. If the strike is prolonged and they don’t reach 15 hours per week, they won’t even receive weekly holiday pay.
After the break ended, work started again.
Jo Min-seok suddenly thought that his situation was like a tire.
Engines or transmissions are repaired even if it costs money. But tires can just be replaced when they wear out or get punctured.
What will happen in two years?
Will he be converted to permanent status, or will he have to find a new job again?
Bang Mu-hyuk, who was working across from him, also had many concerns. He joined Eunsung Motors when he was still a fresh-faced young man.
Back then, there was no concept of permanent employment. Because if you just joined the company, you were unconditionally a permanent employee.
He survived the restructuring during the IMF crisis and endured the difficulties during the financial crisis.
Now, there are less than two years left until his retirement. Others say they are afraid of retirement, but Bang Mu-hyuk wasn’t very worried.
He has a house he bought and money he saved, and when he retires, he will also receive severance pay and a pension. With this much, it’s enough for a couple to spend their retirement, if not abundantly.
The only thing he is worried about is his son.
The reality is that even among young people who graduated from prestigious universities, there are tons of unemployed people. Will his son, who graduated from a local university, really be able to find a decent job?
Jo Min-seok’s face across from him seemed to overlap with his son’s face.
‘Union Leader Joo Seong-mu needs to do well this time.’
***
After work, union members gathered in one place. Union leaders handed out printed leaflets.
The situation at Eunsung Motors was so bad that there was talk that it was the biggest crisis since its founding. The media also poured out concerns about Eunsung Motors, and the political circles also requested restraint from strikes.
The company being in trouble means, conversely, that it is a golden opportunity to strongly pressure the company and get what they want.
The company initially refused the union’s demands, citing declining sales and operating profit, and the union initially staged partial strikes at four factories.
These factories have production lines for small SUVs and mid-size cars that are currently popular. If partial strikes break out in a situation where supply is already insufficient, shipments will naturally be delayed and consumer complaints will arise.
From the union’s point of view, it’s a way to achieve maximum effect with minimal strikes.
After a while, Union Leader Joo Seong-mu arrived at the Pyeongtaek factory. Having visited the Ulsan factories and come straight here, he reported the progress of negotiations to the union members.
The power wielded by the Eunsung Motors union leader is no less than that of a typical executive. The benefits they receive are also considerable.
Union members elect the union leader through voting, and the union leader represents the union members and engages in negotiations with the company.
Joo Seong-mu was inaugurated as union leader this time after several challenges.
The union put forward conditions such as a 7 percent increase in base salary, payment of 30 percent of net profit as performance-based bonuses, and extension of retirement age to 65.
If the union’s demands are passed as they are, the average wage of Eunsung Motors will finally exceed 100 million won.
However, there was a more important issue in this negotiation.
There are more than a few union members who are currently facing retirement. Even if wages increase by a few percent, the period they can receive it is not even a few years.
They strike and struggle every year, but they were satisfied enough with their current jobs. Everyone knows that it will be hard to find a job as good as this anywhere else.
Therefore, there is only one thing they want.
That is to pass on this good job to their children as well.
Therefore, the union included a clause in the demands stating, ‘If a member with 15 or more years of service retires, at least one of their children shall be preferentially hired when hiring employees.’
Union Leader Joo Seong-mu shouted loudly in front of the union members.
“This time, no matter what, we will definitely pass the preferential hiring plan for union members’ children!”
“Waaaaaah!”
At those words, the union members all clapped and shouted.
Similar clauses exist even now. There is a clause that ‘if a union member dies due to an industrial accident, one family member will be hired.’ There have been cases where people were hired in that way, but how many cases are there of death due to industrial accidents at large company factories?
Bang Mu-hyuk shouted, raising his hand.
“Han Min-goo also passed down the chairman position to his own child, why can’t we do it!”
Other union members also agreed.
“If we’ve sacrificed for the company for over 10 years, hiring our children is natural!”
“Is it wrong to want to work at Eunsung Motors for generations?”
“Other large companies are all doing it!”
If the demands are passed, one of the union member’s children can automatically become an Eunsung Motors employee, provided there are no particular disqualifications.
In times of job shortages like these days, there is nothing better than this.
It’s unfortunate that someone else’s child is working as a non-permanent worker, but it can’t be helped. But they must prevent their own children from living like that at all costs.
Aren’t worries about children the same for everyone?
Unfortunately, however, public opinion was not very favorable. Already, words like employment succession and modern-day eumseoje [hereditary recruitment privilege] are being used.
“As you all know, Kang Jin-hoo’s remarks recently became a problem.”
OTK Company CEO Kang Jin-hoo pointed out at the hearing that the wages of Eunsung Motors production workers were too high. Because of that, public opinion was noisy for a while.
The Eunsung Motors union responded by issuing a rebuttal statement and distributing promotional materials to the media, but public criticism did not subside easily.
Union members all expressed dissatisfaction.
“Hey, who does that Kang Jin-hoo think he is, sticking his nose in?”
“He should manage his own company well, why is he telling other companies what to do?”
“Birds of a feather flock together, he’s also a manager, so in the end he’s siding with the chaebols.”
“A guy who’s never even worked in a factory!”
Even labor unions cannot ignore public opinion. Therefore, they were planning to end negotiations as quickly as possible before it worsened further.
Union Leader Joo Seong-mu said.
“If our demands are not accepted in this negotiation, all factories will go on a full-scale strike. I ask for your maximum cooperation, union members.”
***
As soon as I returned to the company, Taek-gyu asked.
“You saw Oracle earlier, right?”
“Yeah.”
This perceptive guy.
“It’s been a while. I thought he disappeared again.”
“It’s been a few months.”
Fortunately, he still looks perfectly fine.
“What did he say?”
I recalled Oracle I had seen earlier.
“He says it’s good to cooperate with Eunsung Motors.”
Taek-gyu had a dumbfounded expression.
“We helped them once during the airbag crisis, what more do they want us to do?”
“That’s what I’m saying.”
Our family went bankrupt because of Eunsung Motors. And my father also passed away because of that.
Han Min-goo, who was the chairman at the time, has already retired. And before retiring, he punished all the employees involved in that incident and prohibited stealing technology from partner companies.
He was probably implying that he would take all the blame, so please look kindly on Eunsung Motors.
Seeing this, does it mean that age isn’t just eaten in vain?
The current situation of Korean manufacturing is not good even as a euphemism. If only one or two automobile factories close down, it will lead to a serious crisis situation.
Eunsung Motors is still suffering from the aftereffects of the airbag recall crisis.
They are barely holding on in Korea, which can be said to be their main base, but overseas sales showed no signs of recovery. Sales have plummeted in North America, Europe, and China, in some cases down to half.
“Shouldn’t we just let them go bankrupt?”
“They probably won’t go bankrupt easily even if we leave them alone.”
Too big to fail.
Of course, being too big doesn’t necessarily mean you won’t die. How many large companies collapsed during the IMF crisis?
The problem is that large companies never die alone. If Eunsung Motors collapses, all related partner companies will also collapse.
If that happens, domestic manufacturing, which is already struggling, will completely collapse.
Well, if they really go bankrupt, we’ll find a way somehow, but until then, we’ll have to endure enormous pain.
About half of the reason Eunsung Motors is in its current situation is also because of me.
What’s the best thing to do?
***
I had a video conference with CarOS executives.
The agenda of the meeting was none other than China. Since CarOS’s rise, the flow of the automobile market is changing rapidly. And Chinese companies are also moving quickly.
“In China, automobile, electronics, and battery companies have gathered and signed the Auto Alliance agreement.”
“Who is the main player?”
“Zhou Motors.”
Zhou Motors is the largest automobile company in China. Using the huge capital earned through domestic sales, they acquired Volvo (only the passenger car division. The commercial vehicle division still belongs to the Volvo Group), and recently made a public offer to acquire 10 percent of Mercedes-Benz shares, becoming the largest shareholder.
Within China, they are also at the forefront of developing autonomous driving technology along with Baidu and Didi Chuxing.
I skimmed through the shareholding structure of Zhou Holdings, the holding company of Zhou Motors, which I had received before the meeting.
“It’s an open secret that the Chinese government is behind Zhou Motors. You can consider it virtually a Chinese state-owned enterprise.”
“Well, which Chinese companies aren’t?”
“That’s true.”
China is a socialist system, and all companies basically have a duty to follow the state’s policies.
The reason for signing the agreement is obviously for cooperation in the future car sector. Already, the United States, Europe, and Japan are also showing similar movements.
“But there’s one thing that’s bothering me.”
“What is it?”
Daryl said cautiously.
“There’s talk that a joint venture may acquire Eunsung Motors’ Chinese corporation.”
“Beijing Motors? Do they have that much capital?”
“They can get it from anywhere if they need it.”
For example, from the Chinese government?
Until a few years ago, Chinese cars were cars you rode because they were cheap. But now, Chinese automakers are also focusing on premium strategies, moving away from low price and low quality.
What would happen if the Eunsung Motors China factory was taken over?
I muttered as if to myself.
“There’s no guarantee this won’t end up like Cheongryong Motors.”
