The wage and collective bargaining negotiations at Hyundai Motor Company are likely to extend beyond the summer vacation period. The union has been on a partial strike for nine days, increasing pressure on management, but the gap between the two sides remains wide. As the strike action spreads to Hyundai Group affiliates, labor disputes are escalating 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 includes both regular day shift workers and general employees. A solidarity rally is scheduled for 8 p.m. on July 29 at the lawn in front of the main building of the Ulsan plant.
In the lead-up to the summer vacation, the union is intensifying its 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. This brings the total number of partial strike days to nine.
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 last year compared to a baseline of 100 in 2020, executive compensation increased to only 220, and the average wage per employee reached just 140. The strike committee stated, "The gap between the increase in operating profit and the compensation for executives and average employee wages is widening."
The positions of the two sides remain unchanged. The company has proposed a monthly base salary increase of 89,000 won, a performance bonus of 350% plus 10 million won, and the distribution of 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 vacation. If there is no dramatic resumption of negotiations or agreement during the partial strike period at the end of this month, labor disputes and strikes are expected to continue for an extended period.
Labor disputes are also spreading within the Hyundai Group. Kia secured legal strike rights following a decision by the Central Labor Relations Commission to cease 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 strike rights following the commission's decision to cease mediation and a successful vote on strike action. The union is demanding a base salary increase and a performance bonus that is 150 percentage points higher than last year, but management has stated that it is difficult to accept 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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