The wage and collective bargaining negotiations at Hyundai Motor Company are likely to extend beyond the summer vacation period. The union has been escalating pressure on management through a series of partial strikes over the past nine days, but significant differences remain between the two sides. As the strike actions spread to Hyundai Group affiliates, labor disputes are intensifying across the domestic automotive industry.
According to industry sources, the Hyundai union began a three-day partial strike on July 29, with workers walking out for four hours each day until July 31. This strike involves not only regular day shift workers but also general union members. A general strike resolution meeting is scheduled for 8 p.m. on the lawn of the main building at the Ulsan plant.
In the lead-up to the summer vacation, the union is increasing pressure on management. Previously, the union conducted partial strikes for two hours daily from July 13 to 15 and for four hours daily from July 20 to 22, totaling nine days of strike action.
The union argues that employee compensation has not kept pace with the company's improved performance. According to the union's analysis, while Hyundai's operating profit index rose to 520 in 2022 compared to a baseline of 100 in 2020, executive compensation increased to only 220, and the average wage for employees reached just 140.
The gap between the increase in operating profit and the compensation for executives and average employees is widening, the union claims.
There remains a significant divide between the two sides. The company has proposed a monthly base salary increase of 89,000 won, a performance bonus of 350% plus 10 million won, and 15 shares of company stock, but the union has rejected this offer. The union is demanding a base salary increase of 149,600 won (excluding seniority increases), a performance bonus equal to 30% of last year's net profit, the reinstatement of dismissed workers, and an extension of the retirement age to 65.
Since the 15th round of negotiations on July 8, there has been little progress in official talks over the past three weeks. With Hyundai's domestic plants scheduled for summer vacation from August 3 to 7, it is likely that this year's wage negotiations will be postponed until after the break. If no dramatic resumption of negotiations or agreement occurs during the partial strike period at the end of this month, labor disputes and strikes may continue for an extended period.
Labor tensions are also spreading within the Hyundai Group. Kia secured the right to strike following a decision by the Central Labor Relations Commission to halt mediation on July 27. The union is prioritizing demands such as the introduction of a 4.5-day workweek and plans to hold its first strike committee meeting on July 30 to finalize the timing and intensity of potential strike actions.
Hyundai Steel's union has also gained the right to strike following the commission's decision and a successful vote. The union is demanding a base salary increase and a performance bonus that is 150% higher than last year, but management has stated that it is difficult to meet these demands due to the downturn in the steel industry and worsening business conditions.
If strikes materialize, production at major facilities such as the Dangjin and Pohang steelworks could be disrupted, impacting the supply of steel products to major customers, including Hyundai Motor Company.
* This article has been translated by AI.
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