Hyundai Motor union begins three-day partial strike ahead of summer vacation..."Full strike possible after holiday"

[Financial News] The Hyundai Motor Company labor union (Hyundai Motor Branch of the Korean Metal Workers' Union) began a partial strike on the 29th. With this year's wage negotiations stalled for nearly three weeks, the union is once again raising pressure on management ahead of the summer vacation period.
From the 29th to the 31st, the union will stage four-hour partial strikes by shift over three days. The first shift and the regular first shift will stop work from 10:50 a.m. to 3:30 p.m., while the second shift will walk out from 7:30 p.m. to 12:10 a.m. the next day. The regular day shift will strike from 12:40 p.m. to 4:40 p.m., and the general staff will join from 1 p.m. to 5 p.m.
In particular, a rally calling for a full strike, attended by all second-shift members, is scheduled for 8 p.m. on the lawn in front of the main building on the 29th. The next meeting of the strike countermeasures committee is set for August 11.
The union argues that the company has enough room to raise wages, citing its financial performance. According to the union's own analysis, if 2020 is set at 100, Hyundai Motor Company's operating profit index rose to 520 last year, while executive compensation reached only 220 and the average salary per employee stood at 140. On that basis, the union said, "The company has sufficient capacity to pay for wage increases, including performance bonuses, a 50% increase in bonuses, and an extension of the retirement age."
The union is also taking a hard line against management's stance that it would consider additional wage and performance bonus proposals if the union drops key demands such as a 50% bonus increase, a higher retirement age, and reinstatement of dismissed workers. The union said, "This 'just once' has been going on for years. Management has always done it that way." It added, "We believe it is time to put an end to it. If the company again tries to gloss over our core demands, we think labor-management relations will tilt even further."
On the intensity of the strike, the union explained, "In the long term, this is still the warm-up stage." It added, "Having normal workdays is a way to bring management to the bargaining table." The union also warned, "If management's attitude does not change, we plan to gradually escalate not only the strike hours but also the number of strike days after the vacation."
It also raised the possibility of a full strike directly. The union said, "A full strike involves many factors to consider, including lost wages," but added, "If management does not change its attitude and this struggle intensifies, it will end in a full strike."
Hyundai Motor's labor and management have held 15 rounds of negotiations since their first meeting on May 6 through the 8th of this month, but have failed to narrow their differences. At the 15th round, management presented a third proposal that included a monthly base-pay increase of 89,000 won, a performance bonus of 350% plus an additional 10 million won, and 15 shares of company stock. The union rejected it, saying it fell short of members' expectations.
The union is demanding 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, an increase in bonuses from 750% to 800%, and a retirement age extension of up to 65, linked to the start of National Pension benefits. Other demands include a full monthly salary system, the introduction of a 4.5-day workweek, guarantees for employment and working conditions related to Artificial Intelligence (AI), new hiring, and reinstatement of dismissed workers. The extension of the retirement age, reinstatement of dismissed workers, and a 50% bonus increase are seen as the key issues in this round of talks, but management is reportedly maintaining that they cannot accept them.
Hyundai Motor's domestic plants will go on summer vacation from the 3rd to the 7th of next month. Taking the weekends before and after into account, production is expected to remain idle for nearly 10 days in early August. The union plans to maintain emergency duty by its leadership during the vacation period and respond to management's moves.
The union has already suffered production disruptions from three partial strikes and refusals to work overtime this month. With renovation work to replace aging equipment at the Hyundai Motor Asan Plant and line conversion schedules at the Ulsan Plant also overlapping, the burden of restoring normal production in the second half of the year is reportedly growing. After the vacation, the union plans to treat management's proposal as a new turning point and discuss further escalation at the August 11 meeting of the strike countermeasures committee.
[email protected] Kim Dong-chan Reporter