Hyundai Motor Union Demands 900% Bonus and Retirement Age Extension

Hyundai Motor's union plans to present a demand to the company in this year's wage and collective bargaining negotiations, focusing on a 900% bonus and retirement age extension. The union's demands also include, as in previous years, the payment of 30% of net profit as a performance bonus. Last year, Hyundai Motor's net profit was 13 trillion 229.9 billion won, and they are demanding 3 trillion 969 billion won, which is 30%, as a performance bonus. As the Donald Trump U.S. administration has started a high tariff policy on imported cars, increasing the difficulties for Hyundai Motor, which has a high export ratio to the U.S., the union's demand for a performance bonus amounting to 4 trillion won is expected to intensify labor-management conflict.

The Hyundai Motor union held a temporary delegates' meeting at the Hyundai Motor Culture Center in Buk-gu, Ulsan, on the 28th and 29th and finalized the demands for the wage negotiations. The union's demands include a monthly base salary increase of 141,300 won (excluding seniority increase, according to the Metalworkers' Union guidelines) and the payment of a performance bonus of 30% of last year's net profit.

Additionally, they demand the inclusion of various allowances in the regular wage, an increase or establishment of allowances by job group and position, recruitment of new personnel, and the establishment of a support center for retirees. The union plans to demand an extension of the retirement age from the current 60 years to the end of the year before the start of receiving the national pension (up to 64 years).

They have also prepared a plan to establish a 40-year service award standard, which was previously up to 35 years, considering the retirement age extension.

The union is also promoting a plan to grant union membership qualifications to skilled re-employed workers in connection with the retirement age extension. Skilled re-employed workers refer to employees who are rehired as contract workers after retirement, and Hyundai Motor guarantees a total of 2 years with a 1-year+1-year contract, but the salary is paid at the level of a new employee.

Within the union, there is an analysis that granting these workers the right to vote on tentative collective bargaining agreements, the right to vote on strikes, and the right to elect union branch heads, while introducing a wage peak system, effectively increases the retirement age to 62 years. It is known as a strategy to prepare for the difficulty of extending the retirement age.

The demands for the revision of the collective agreement include the introduction of a 4.5-day workweek by reducing Friday working hours by 4 hours without a salary cut, and increasing the current 750% regular wage bonus to 900%.

The union plans to send the finalized demands to the company soon. Labor and management are expected to hold a preliminary meeting as early as June and start full-scale negotiations.

Previously, Hyundai Motor's labor and management have concluded negotiations without a strike for six consecutive years since 2019. However, with the union executive election scheduled at the end of the year, and the rapidly changing market situation due to the Donald Trump U.S. administration's high tariff policy and the electric vehicle chasm (temporary demand stagnation), it is predicted that labor-management conflict over this year's wage negotiations will intensify.

Choi Jong-geun Reporter
cjk@fnnews.com Choi Jong-geun Reporter