Hyundai Union Extends Partial Strikes to Six Hours

The Hyundai Motor labor union has extended its partial strike to six hours a day, intensifying its pressure on management ahead of the National Liberation Day holiday. This escalation began on August 12, three days after the union returned from summer vacation. The strike, which started at two hours in July, has progressively expanded to six hours in August, reflecting the widening gap between the workers and the company's management.

On August 14, the Hyundai Motor branch of the Korean Metal Workers’ Union will stage a six-hour strike during both the first and second shifts, resulting in production lines halting operations for up to 12 hours. The union's demands include a base pay increase of 149,600 won and a 30% share of the previous year's operating profit as a performance bonus, along with increased regular bonuses and an extension of the retirement age.

In contrast, the company argues that it cannot fully accommodate the union's requests due to the uncertain business environment. Management offered a base pay increase of 89,000 won, a performance bonus of 350% plus 10,000,000 won, and 15 company shares, but the union dismissed this proposal as insufficient.

The escalating strike has raised concerns about potential disruptions in vehicle production. As the automobile manufacturing process involves interconnected production lines, even brief strikes can accumulate delays. Hyundai Motor linked the union's recent actions to a 5.1% decrease in global sales in July, with both domestic and overseas sales declining.

The company anticipates further production disruptions as the union has threatened additional six-hour strikes on August 18 following the National Liberation Day holiday. If negotiations between the union and management fail to reach a resolution, the strike could persist beyond the upcoming week, posing a significant challenge for both parties.