Hyundai Motor Union Launches Partial Strike for Third Consecutive Day; Production Disruptions Inevitable Amid Stalled Wage Negotiations

*This content was translated by AI.

The Hyundai Motor Labor Union continued its partial strike for the second day after failing to reach an agreement in this year's wage negotiations. The Metal Workers' Union Hyundai Motor Branch announced on the 14th that approximately 20,000 technical union members at the Ulsan plant halted work for a total of four hours—two hours each during the morning and afternoon shifts. As a result, morning shift workers will leave work two hours earlier than usual at 1:30 p.m., while afternoon shift workers are scheduled to finish ahead of schedule at 10:10 p.m. This partial strike marks the second day of a three-day schedule, marking the second consecutive year that Hyundai Motor has experienced strikes during wage negotiations following last year's dispute.

The automotive industry estimates that when Hyundai Motor's production lines halt, hourly losses exceed 18.7 billion won. The union has refused all weekday overtime and weekend special shifts since the 6th, leading to growing cumulative production disruptions. Sales from areas where production is halted due to the strike amount to approximately 78.768 trillion won as of 2025 on a separate basis, representing 42.29% of Hyundai Motor's recent consolidated revenue.

To prepare for this year's wage negotiations, both sides conducted a total of 15 negotiation sessions but failed to narrow differences on key issues such as the magnitude of wage increases and performance bonus scales. On the 8th, during the 15th session, management presented its third proposal, which included an 89,000 won increase in monthly base pay, a 350% performance bonus, a one-time payment of 1 million won, and distribution of 15 shares of company stock. This proposal added 5,000 won to the base salary, 500,000 won to the one-time payment, and three additional shares compared to previous proposals, but the union rejected it, stating it fell short of members' expectations. The union is demanding a monthly base pay increase of 149,600 won (excluding seniority-based raises) and performance bonuses equivalent to 30% of last year's net profit. Consequently, the difference in proposed base salary increases between the two sides stands at 60,060 won. Other key issues remain unresolved, including reinstatement of dismissed union members, extension of retirement age, and an increase in year-end bonuses from 750% to 800%, representing a 50% rise.

On the third day of the strike, the 15th, the union participated in a general strike by the Metal Workers' Union and plans to convene the Central Struggle Committee on the 16th to further discuss future struggle directions and strike intensity levels. The union stated that if management does not submit additional proposals by the 16th regarding demands such as fair performance bonuses, increased year-end bonuses, and retirement age extension, it will escalate the strike without resuming negotiations. However, the union also conveyed its willingness to resume talks if reasonable proposals are presented.

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*This content was translated by AI.