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Source: Hyundai Motor Group |
[Alpha Biz= Kim Jisun] Hyundai Motor Company’s labor union has secured the legal right to strike in this year’s wage and collective bargaining negotiations, marking the potential for the first walkout in seven years.
The likelihood of an actual strike appears higher than in previous years, as the union grows increasingly concerned about losing work opportunities due to Hyundai’s expansion of U.S. production in response to American import tariffs.
The union is demanding a base salary increase of KRW 141,300 (excluding seniority pay), a performance bonus equivalent to 30% of last year’s net profit, an extension of the retirement age to 64, and the introduction of a 4.5-day work week.
Management, however, has expressed reservations, citing ongoing U.S. tariff pressures and a slowdown in electric vehicle (EV) demand that are expected to weigh on profit margins in the second half of the year.
On August 25, the union announced that 86.15% of its 42,180 members voted in favor of strike action, with a turnout of 94.75%. The National Labor Relations Commission (NLRC) also ended its mediation efforts that same day, enabling the union to proceed with a legal strike. The Central Strike Committee is set to convene on August 28 to determine the strike schedule.
Although the union secured strike rights last year, negotiations ultimately concluded without industrial action, marking six consecutive years of peaceful agreements. Since the initial meeting on June 18, labor and management have held 17 rounds of talks without reaching common ground, with wages cited as the key sticking point.
Industry observers warn that unless Hyundai presents a revised offer soon, a strike could begin in early September.
Meanwhile, Hyundai has ramped up EV production in the U.S. to mitigate tariff impacts, resulting in a sharp decline in South Korea’s EV exports to the U.S. In July, exports plummeted 97.4% year-on-year to 164 units, the lowest monthly figure since 2021. Domestically, EV production lines have faced repeated shutdowns, including the week-long suspension of the Ioniq 5 and Kona EV line at Ulsan Plant 1 in mid-August — the sixth stoppage this year.
Management is expected to request a resumption of talks in the coming days in an effort to narrow differences and avoid a strike.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
