The union stages two-hour work stoppages during morning and afternoon shifts at the company’s domestic plants on Wednesday and Thursday, and plans to extend the walkout to four hours on Friday. The action halts production across Hyundai’s key facilities in the country.
The strike is the first since 2019. Over the past six years, labor and management had managed to sidestep strikes even through the pandemic and a period of heightened trade tensions between South Korea and Japan.
This year, however, negotiations broke down after 20 rounds of talks since June 18. Hyundai had offered a second proposal that included a base salary increase of 95,000 won, or about $68 a month, performance bonuses worth 400 percent of monthly pay plus 14 million won in cash, and 30 shares in the company for each worker.
Union leaders rejected the package, demanding a larger monthly raise of 141,300 won, performance pay equivalent to 30 percent of last year’s net profit, and an extension of the retirement age to 64 without income gaps.
“It is regrettable that the union decided to strike despite insufficient substantial discussions on negotiation items,” Hyundai said in a statement, adding that it would continue to seek “reasonable" results that allow labor and management to coexist.
The dispute centers on wages and retirement age, with the union pointing to Hyundai’s strong performance — a record 14.2 trillion won operating profit last year and a 7.3 percent revenue increase in the second quarter.
Management, however, has cited rising concerns over U.S. tariff pressures and a slowdown in the global electric vehicle market.
The unrest spread beyond Hyundai. On Wednesday afternoon, unions at HD Hyundai, the country’s top shipbuilder, also walked off the job.
reporter
Kim Dong-young
davekim0807@ajupress.com
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