Labor conflicts are intensifying in major manufacturing sectors, including automotive, semiconductor, and steel, indicating a prolonged period of strikes. Following the announcement of a full strike by the Hyundai Motor Company union on August 21, the Kia union is also ramping up pressure on management while securing the right to strike. SK Hynix is continuing negotiations over wages and bonuses, and the Posco union is facing its first strike threat in 58 years since its establishment.
According to industry sources, the Hyundai union has been conducting partial strikes of four hours each on August 19 and 20. An eight-hour full strike is scheduled for August 21, followed by additional four-hour partial strikes on August 24 and 25. This will be the first full strike by the Hyundai union since collective bargaining in 2016.
Notably, the nationwide metalworkers' union will also participate in the strike. Approximately 90,000 workers, including Hyundai employees, parts suppliers, and affiliates of the Hyundai Motor Group, are expected to join in solidarity, potentially halting production lines entirely. Given the production disruptions already caused by previous strikes and the upcoming strike schedule, Hyundai's production losses are estimated to reach 60,000 vehicles, with financial losses projected at 2.6 trillion won.
The main points of contention between Hyundai management and the union include the union's demands for the reinstatement of dismissed workers, a 50% increase in bonuses, and an extension of the retirement age. The metalworkers' union is also advocating for the establishment of primary negotiations, the cessation of price cuts by parts suppliers, and an extension of the retirement age within the Hyundai Motor Group. A representative from the Hyundai and Kia unions stated, "The company has achieved record profits but is unfairly distributing rewards only to executives while ignoring the hard work of union members. We strongly condemn management's behavior of holding a bonus party for executives while neglecting the contributions of workers."
The semiconductor industry is also at a critical juncture following disputes over bonus distribution. SK Hynix's management and labor have reached a tentative agreement to distribute 60% of the excess profit-sharing bonus in company stock and 40% in cash. This marks a departure from the previous principle of full cash payment, reflecting some adjustments in management's proposal.
However, tensions remain. Internal dissatisfaction with management's proposal has led to the formation of a new 'integrated union' that encompasses both production and technical staff, indicating a potential conflict among workers. As this agreement is still tentative, a vote among union members is required, raising questions about whether it can overcome internal dissent and reach a final resolution amid the ongoing labor strife.
In the steel and shipbuilding industries, labor disputes over wages and collective agreements are escalating, heightening the threat of strikes. Posco secured the right to strike following a decision by the Central Labor Relations Commission to halt mediation on August 18, putting its 58-year history of no strikes at risk.
Since wage negotiations began in June, Posco's management and labor have held six rounds of negotiations but have failed to reach an agreement due to differences over wage increases and bonuses. The union is demanding a 7.1% increase in base salary and a 600% bonus, while management has proposed a 1.5% increase in base salary and a bonus of 2.5 million won.
The shipbuilding industry, currently experiencing a boom, is also facing rising tensions over wage negotiations. The HD Hyundai Heavy Industries union applied for labor dispute mediation with the Central Labor Relations Commission on August 14 and plans to hold a vote on strike action from August 25 to 27. The two sides are at odds over base salary increases, expanded bonuses, and sharing 30% of operating profits.
Hanwha Ocean is struggling to even hold preliminary negotiations for this year's wage talks, facing difficulties amid issues related to direct negotiations between subcontractor unions and primary contractors due to revised labor laws, further increasing uncertainty in labor relations.
* This article has been translated by AI.
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