Hyundai Motor labor union to stage two-hour partial strikes daily from the 13th to the 15th; company urges it to avoid a war of attrition

[Financial News] The Hyundai Motor Company labor union, the Hyundai Motor Branch of the Korean Metal Workers' Union, has decided to stage two-hour partial strikes every day from the 13th to the 15th.
The union made the decision on the 8th after holding its second Central Strike Countermeasures Committee meeting. On the 15th, the final day, it will also join the KMWU general strike.
Before the committee meeting that day, the union sat down with the company for the 15th round of negotiations, but the talks ended without a conclusion, prompting the union to move ahead with strike action. At the meeting, the company presented a third proposal that included a monthly base-pay increase of 89,000 won, performance bonuses of 350% plus 10 million won, and 15 shares of stock, but the union refused to accept it.
The union said, "The management side has not made a responsible decision on our key demands, and it has also disappointed members' expectations with additional wage-related items," adding, "We will go our own way."
Even so, the union said it will continue negotiations despite deciding to strike. If the company comes up with a new proposal and reaches a tentative agreement, the strike schedule could still be delayed. If the strike goes ahead, it would mark a second straight year of industrial action.
The biggest issues in the talks are the size of the wage increase and the bonus hike. The company says it does not have enough room to maneuver, citing a roughly 19.5% drop in operating profit last year from a year earlier and sluggish sales in the first half of this year. The union, however, argues that real wages must be protected in light of inflation. It is also strongly pushing for a raise in bonuses from the current 750% to 800%, the reinstatement of members dismissed in the past for illegal acts, and an extension of the retirement age.
When bargaining began in May, the union's demands included a monthly base-pay increase of 149,600 won, excluding seniority-based raises, a performance bonus equal to 30% of last year's net profit, guarantees of employment and labor conditions related to AI, a full monthly salary system, shorter working hours without increasing labor intensity, and the hiring of additional staff.
The two sides have also found some common ground during the negotiations. Both agreed to work on employment stability in preparation for future industrial transformation and to improve working conditions for union members when AI technology is introduced. They also decided to form a separate task force to discuss the introduction of a full monthly salary system and shorter working hours.
The company said, "It is regrettable that the union has decided to strike," adding, "We need to continue discussions on the bargaining agenda so that we can avoid an unnecessary war of attrition and reach a reasonable outcome that allows labor and management to grow together."
eastcold@fnnews.com Kim Dong-chan Reporter