Hyundai Motor’s union stages first full strike in 10 years

The Hyundai Motor labor union declared a full strike for the first time in 10 years, demanding 30% of the company’s net profit from last year as performance bonuses, a 50% increase in bonuses, reinstatement of union members dismissed during past union activities, and an extension of the retirement age to 65 or older. Management countered by proposing a feasible plan, insisting that any extension of the retirement age requires legislative action and that reinstating dismissed workers was already ruled on by the courts.

The possibility of additional strikes on Aug. 24 and 25 heightens concerns over increased production halt damage. On Aug. 21, Hyundai Motor's Ulsan, Jeonju, and Asan plants saw all production lines halt due to union members not arriving for their morning and afternoon shifts. Approximately 39,000 union members, comprising production and office staff, participated in the strike, marking the first full-day, all-out strike since September 2016.

The union plans to visit Hyundai Motor Group headquarters in Seoul to press the company and join a strike rally by the Korean Metal Workers' Union. If the company fails to present a new negotiation plan, the union intends to hold a Central Dispute Countermeasure Committee meeting on Aug. 25 to discuss further strikes. Hyundai Motor produced 460 units per hour last year, resulting in a total production disruption of 62,000 units this summer, equivalent to a sales loss of 2.6 trillion won ($1.9 billion).

The union claims Hyundai Motor had 101.3 trillion won in retained earnings in 2022, nearly nine times more than in 2007, and argues that extending the retirement age by two years would cost 180 billion won annually, which the company's annual net profit of 13 trillion won could cover.