Hyundai union back in wage talks after rare full-day strike

The Hyundai workers' union has resumed wage talks with management following a rare full-day strike, marking the first such action in a decade. The dispute centers around demands for a US$108 increase in basic monthly pay - a 50% rise in bonuses, and a higher retirement age. On Friday, approximately 40,000 employees at South Korea's largest carmaker walked off the job, as negotiations over pay and retirement plans reached an impasse.

The union's move comes amid growing worries over job security, as artificial intelligence reshapes the automotive industry, a cornerstone of the nation's economy.

A union official informed AFP on Monday that negotiations with management would restart at 2pm. While a planned four-hour walkout earlier in the day was canceled, another strike planned for Tuesday may still occur, contingent on the outcome of the ongoing negotiations. The union will decide on staging a partial strike depending on the result of today's talks.

Throughout 2022, Hyundai Motor workers have organized a total of 60 hours of strikes, resulting in estimated losses of around US$1.6 billion, according to calculations by local news agency Newsis. Hyundai Motor has rejected the union's demands without any solid legal or rational basis. Despite posting record second-quarter revenue of 49.2 trillion won, the company's operating profit declined by 20.8% year-over-year due to weaker sales.