SEOUL -- Unionized workers at South Korea's largest automaker, Hyundai Motor Co., said on Friday they could go on strike around the end of the month to demand higher wages if talks with management fail.
Analysts said employers could face a particularly tough bargaining season with unions this year because the government of President Roh Moo Hyun, a former labor lawyer, appeared to have caved in after a series of strikes this year.
"Talks broke down today after management showed no serious response to our proposals," a Hyundai union leader told Reuters.
He said Hyundai's 39,000 unionized workers planned to vote on whether to take strike action on June 24 and could launch a strike around the end of the month if a majority of union members supported it.
A Hyundai Motor spokesman said the management would continue to hold talks with the union to try and prevent a strike.
"We believe some of their demands are unacceptable, but we will do our best to prevent the worst thing (a strike) from happening," said a company spokesman.
Unionized workers are demanding an 11 percent wage increase, or around 125,000 won ($105) a month and better working conditions for temporary workers.