Hyundai Motor union, wage negotiations break down... strike discussion at Lim Si-dae (Rep.) convention on the 23rd

*This content was translated by AI.

The wage negotiations between Hyundai Motor and its management, the central axis of Korea's automotive industry, are heading straight for a disastrous strike. With the union officially declaring a breakdown in talks with the company, the peaceful trend of settlement that has continued for several years is expected to be shattered, and a strong wind of 'summer struggle' is likely to sweep across the entire industrial sector.

According to industry sources on the 12th, the Hyundai Motor Labor Union (Metal Workers' Union, Hyundai Motor Branch) declared a breakdown in this year's wage negotiations at the 11th round of talks held at the main building of the Ulsan plant. The union cited the company's insincere attitude as the main reason for the breakdown.

A union official strongly protested, stating, "The company is merely repeating that the business environment is difficult like a parrot, and has not put forward any concrete proposal at a level that members can accept, including the most critical wage increase plan."

Consequently, the union will enter the formal procedures to secure its legal right to strike. Starting with an application for dispute mediation to the Korea Labor Relations Commission (KLRC) on the 15th, it plans to hold the Lim Si-dae (Rep.) convention on the 23rd to establish a concrete framework for future struggle and strike directions. Subsequently, around the 25th, a yes-or-no vote on whether to strike will be conducted among all union members. If the KLRC determines that mediation is impossible due to the wide gap in positions between labor and management and issues a 'mediation suspension' decision, and if the number of affirmative votes in the member vote exceeds half of all union members, the union will gain legal momentum for a strike.

The reason this year's Hyundai Motor labor-management negotiations have faced such difficulties from the outset is that the demands and positions of both sides are more sharply divided than ever before. The union has put forward demands for a monthly basic wage increase of 149,600 won (excluding seniority-based raises), payment of 30% of last year's net profit as performance-based bonuses, and more. In addition, it is demanding guarantees for employment stability and working conditions due to technological changes such as the introduction of artificial intelligence (AI), implementation of a full monthly salary system, and an increase in bonuses from the existing 750% to 800%. Furthermore, there are major challenges ahead, including shortening working hours without intensifying labor, extending the retirement age to a maximum of 65 years linked to the timing of National Pension eligibility, and recruiting new personnel.

The business community and experts are concerned that this breakdown in negotiations could spread beyond Hyundai Motor to trigger a chain of strikes across key national industries such as shipbuilding and automotive. In particular, the tug-of-war over the magnitude of basic wage increases and performance bonuses, as well as the intense debate between labor and management over institutional changes such as retirement age extension and the full monthly salary system, are likely to become a long-term conflict. During last year's negotiations, the union barely reached an agreement after conducting partial strikes three times, so tensions between labor and management are expected to be even tighter this year. The industrial sector is closely watching the outcome of the KLRC mediation and the direction of the member vote.

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*This content was translated by AI.