The Hyundai Motor Workers' Union (Metal Workers' Union Hyundai Branch) has initiated a full strike for the first time in a decade due to stalled wage negotiations. The production losses from previous strikes have already exceeded trillions of won, and the ongoing strike is expected to push this year's production losses beyond 3 trillion won.
According to the automotive industry on August 21, in accordance with the union's strike guidelines, technical workers in the morning shift, who typically start work at 6:45 a.m., did not report for duty. The afternoon shift, starting at 3:30 p.m., also did not show up. As a result, all production lines at the Ulsan, Jeonju, and Asan plants have come to a complete halt.
With both morning and afternoon shifts striking for 8 hours each, the production lines will be inactive for a total of 16 hours. Approximately 39,000 union members, including both production and office staff, are participating in the strike.
The union has conducted partial strikes of 2 to 6 hours daily since the initial negotiations began on May 6, but this marks the first instance of an 8-hour strike. Notably, this is the first full strike since September 26, 2016, during wage negotiations.
Union leaders and delegates are also participating in a joint strike rally organized by the Metal Workers' Union in front of the Hyundai Motor Group headquarters in Yangjae-dong, Seoul, to apply direct pressure on the company.
As a result of the full strike, the cumulative strike hours for the Hyundai union this year have reached 60 hours, leading to a production halt of approximately 120 hours. Considering Hyundai's production rate of about 460 vehicles per hour, the cumulative production loss is estimated to be around 55,200 vehicles, with the associated revenue loss exceeding 2.3 trillion won.
The union has announced plans for additional 4-hour partial strikes on August 24 and 25, indicating that production disruptions are likely to continue.
The Hyundai management and union are at an impasse in their negotiations. The union is demanding a basic salary increase of 149,600 won, a 30% performance bonus based on last year's net profit, an increase in the bonus payment rate from 750% to 800%, an extension of the retirement age, and the reinstatement of dismissed workers.
In contrast, management has proposed a basic salary increase of 89,000 won, a performance bonus equivalent to 350% of the monthly base salary plus an additional 10 million won, and the issuance of 15 shares of company stock. Regarding the extension of the retirement age, management suggested discussing it further if legal changes occur. They also stated they would review the conditions for reinstating dismissed workers based on the individuals' wishes.
In a press release the day before, the union argued, "The retained earnings, which were 11.4 trillion won in 2007, have increased ninefold to 101.3 trillion won as of 2025, yet the fixed wage ratio for union members is only 54.8%, making a 50% increase in bonuses a reasonable demand."
Regarding the extension of the retirement age, the union emphasized, "There is a growing social consensus on extending retirement ages, including gradual increases for public sector employees, yet the company is avoiding discussions by claiming it requires legal amendments. Our union has a history of extending retirement ages through collective bargaining, independent of legal changes."
* This article has been translated by AI.
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