Hyundai Motor Company Namyang Research Institute working condition survey including suicide from overwork and occupational mental illness

Korean Institute of Labor Safety and Health

2022

1. Background

In January 2022, the death of a worker caught the public’s attention. It was the suicide of a worker in charge of design for Hyundai Motor Company, an internationally recognized automobile brand. It was suggested that the worker’s death may have been caused by overwork and job stress. The incident raised the need for Hyundai Motor’s Namyang Research Institute to examine how various workers perceive and judge job stress, the factors that cause it, and their experiences in the workplace.

2. Survey Results

The results were analyzed based on data from 636 respondents. Respondents reported high levels of performance pressure and labor intensity, with “shortened development periods and diversification” as the main reasons. In addition, a large proportion of the respondents were “dissatisfied” with their work-life balance, and “worrying about work even when not working.” This had a negative impact on their lives.

When asked about changes in working conditions since 2020, the proportion of respondents who reported no significant changes was generally high, but the proportion of respondents who reported an increase in weekly working hours and the amount and type of work was particularly high among researchers. The proportion of respondents who reported an increase in the speed and volume of work and new tasks was also high among researchers.

In the survey results on mental health and psychosocial stress, male respondents had higher job stress scores in the areas of job demand, relational conflict, and organizational system compared to general workers. Women had higher job stress scores in the areas of job insecurity, organizational system, and workplace culture. Overall, burnout and chronic fatigue rates were high, with the most common cause being the physical and mental strain of work. As a result, rates of depression, anxiety, insomnia, and suicidal thoughts were several times higher among researchers than the general population.

In the workplace harassment survey, 28% of researchers and 35% of non-researchers were at risk of depression and burnout due to mental and sexual harassment in the workplace. However, there was a low level of trust in the protection system or response to workplace harassment in the organization.

3. Ensure objectivity in evaluations

Workers’ acceptance of the evaluation results was not high because of the strong subjectivity in the evaluation and compensation systems. For senior engineers, the annual salary is determined by the evaluation, but it is difficult to challenge the evaluator. On the other hand, general researchers and managers tend to be less accepting of evaluations because of the weak link between evaluation and compensation. It is necessary to quantify the evaluation method as much as possible and improve it to secure objectivity. The participation of workers and the involvement of labor unions in the process of establishing objective indicators will increase fairness and acceptance.

Discussing wages

We found that the link between evaluation and compensation is weak. Even for senior engineers where the evaluation supposedly directly affects wage decisions, there is often a disconnect between pay and evaluation results. There is a high demand for a wage system that is commensurate with research positions. We are at a point where we need to discuss the wage system apart from expanding the quantification and objectivity of evaluations. The labor union and the company have agreed to continue discussions, and the labor union needs to discuss this issue with its members in this process.

Clarifying the scope of work

In the process of responding to market changes and shortening development periods, engineers’ labor has continued to increase and expand in scope. This increases labor intensity which inevitably leads to labor tension throughout the entire production process. To alleviate this, it is necessary to clarify the content and scope of each task.

Breaking down information barriers

Due to the lack of manuals and lack of systemization, low-seniority workers complain of difficulties in accumulating and sharing information. It is necessary for companies to accumulate common information that can be utilized by organization members, and then share experiences and case examples.

Supporting career development

The promotion refusal system (refusal to promote to a management position) has had a negative side effect of generating conflict and resentment. After the introduction of the system in 2012, workers with 10 years of experience as a general researcher were not recognized as such. This was a loss for the company, but the company did not control or manage the various conflicts that existed within the organization. This is because the company perceived the expansion of unions negatively. However, workers in management positions also need the same protections as unionized workers. Furthermore, the reason why workers want their time in general research positions to be recognized as experience is not just because they want to increase their seniority. They want their experience to be recognized to validate the path they have taken as research technicians. Therefore, there is a great need to systematize the career development structure for engineers.

Setting guidelines for respecting human rights

Without guidelines for respecting human rights, the line between motivation and gaslighting continues to blur within organizations. A clear response structure to workplace harassment, awareness among the organization’s employees, assigning a person in charge from the first case, establishing a resolution process, and having specialized personnel were all missing. It is necessary for the union and the company to establish all these procedures and systems together.

Take steps to expand union effectiveness

Unionization within the Namyang Research Institute appears to have been hampered by the large number of senior positions that are excluded from union coverage. When researchers are promoted to senior engineer positions, they lose union membership, making their position in the work structure relatively weak. It is necessary to establish a structure that allows unions to intervene and play a role in matters concerning workers outside the scope of the union, and to continue to expand their influence.

4. Measures to reduce job stress

Need for labor-management consensus on job stress

Although working hours have objectively decreased due to legally mandated limits on weekly working hours and the implementation of telecommuting due to the impact of COVID-19, the amount of work has not decreased. The work intensity of the workers at Namyang Research  Institute remains high, and the effects of the continuous shortening of the development period and diversification have led to a collapse in work-life balance, resulting in a situation where they are “worried about work even when they are not working.” With the reorganization of the automotive industry and a large number of workers being marginalized from future market prospects, the uncertainty of work has increased anxiety. The reality that achievements are not shared by all employees has led to high dissatisfaction in the “organizational system area.” Meanwhile, a significant number of employees complained of workplace harassment (mental and sexual violence). Since 1/3 to 1/4 of employees have experienced mental and sexual violence in the workplace, it is necessary to build consensus among workers and management that harassment is a workplace crisis. Consensus building is essential to identify common issues to resolve and mitigate, and to go through the process of cooperation and implementation of solutions.

Identify strategic tasks to reduce job stress

We propose to conduct a survey of all employees based on cooperative discussions between labor and management. Objectivity, neutrality, and professionalism should be assured, and corrective actions should be implemented as a result. Therefore, it is necessary to form an organization such as a “survey committee” that includes an equal number of members from labor and management and recommended experts from both sides.

Corporate crisis response and handling procedures need to be urgently reorganized. Although companies have a “One-click HR” system to deal with workplace harassment, half of the respondents in the survey said they did not know about it. In the operation of the grievance mechanism, victim protection (such as protecting the identity of the complainant and urgent separation from the perpetrator if necessary), transparency in the case handling process, and reasonable trust in the outcome of the case must be established to function properly. Grievance outcomes should be regularly shared with members to rebuild trust in the organization. It is also necessary to establish a system of cooperation with ‘outside’ mental health organizations. This could be done by involving labor unions to monitor the operation and use of these organizations.

Establishing a task force to improve organizational culture and move toward a ‘democratic community’

Hyundai Motor’s Namyang Research Institute has many problems to solve. These include ignoring the right to rest, an evaluation structure that is difficult to understand for those being evaluated, internal politics, overwork, a sense of alienation and deprivation for many employees, blocked and concealed information, a lack of structural support for career development, and a lack of organizational awareness of human rights and gender sensitivity. It is urgent to acknowledge that the company’s existing programs to examine its culture have been limited and have failed to adequately collect and reflect grievances. Based on this recognition, a task force should be formed to go beyond expressing the willingness of labor and management to make joint efforts to transform the organizational culture. Instead, the task force should improve the organizational culture by selecting short- and long-term tasks and move forward to make systematic changes for improvement.