Hyundai Motor’s management and union representatives recently held a meeting at the company's Ulsan factory to discuss wage and collective bargaining agreements for this year. However, negotiations hit a snag, leading the labor union to announce a four-hour partial strike for two days starting on September 13. If the strike proceeds, it will be the first one in five years for Hyundai Motor. The labor union unanimously decided on the strike during a meeting of the union’s Central Dispute Committee on September 7. The union will decide whether or not to proceed with the strike after evaluating the management’s proposals on extending the retirement age, eliminating discrimination against non-regular employees, reinstating fired workers, and an additional wage proposal to be submitted by September 12.
In this year’s labor agreement, the union is demanding a base salary increase of 184,900 won, a performance bonus of 30 percent of the previous year’s net profit (including stocks), and a 900 percent increase in bonuses. Additionally, they are calling for an extension of the retirement age from 60 to 64, a workforce management plan for a new EV plant, increased financial sources for housing subsidies, more discounted vehicle models for employees, and higher holiday homecoming and summer vacation allowances. For the past four years, labor and management have successfully completed collective bargaining without a strike. If the union proceeds with the strike, it will mark the first labor dispute for Hyundai Motor in five years.
The labor union plans to hold an all-night demonstration on September 7. If the management fails to produce any additional proposals that satisfy the union despite the two-day partial strike, the union will hold another Central Dispute Committee meeting on September 14 to finalize an additional strike plan. Both sides have until then to reach an agreement and avoid a strike. The outcome of the negotiations will not only impact the employees and management of Hyundai Motor but will also have broader implications for the automotive industry in South Korea.