Hyundai Motor Union Secures Right to Strike as CLRC Halts Mediation

Strike Decision to Be Made at Central Strike Countermeasure Committee Meeting on June 30

The Hyundai Motor labor union (Hyundai Motor Branch of the Korean Metal Workers' Union) secured the legal right to strike on June 25 in connection with this year's wage negotiations.

According to Hyundai Motor's labor and management, the Central Labor Relations Commission (CLRC) decided to halt mediation on the union's application for labor dispute arbitration on the same day.

The commission judged that the gap between labor and management positions in this year's wage negotiations is significant.

Finished vehicles are waiting in the storage yard next to the export shipment dock at Hyundai Motor Company's Ulsan plant. Photo by Yonhap News

Previously, on June 24, the union held a strike vote among all members, and more than half voted in favor. With the CLRC's decision to halt mediation on June 25, the union has now acquired the legal right to strike.

The union plans to hold the inaugural meeting of the Central Strike Countermeasure Committee on June 30 to discuss the direction of the strike and related matters.

The union held 11 rounds of negotiations, but after the company failed to present a proposal, it declared a breakdown in talks on June 12 and began procedures to prepare for a strike.

This year, the union is demanding an increase in the monthly base wage by 149,600 won (excluding step increases), a performance bonus equivalent to 30% of last year's net profit, an increase in the annual bonus from 750% to 800%, and an extension of the retirement age.

The main issue is the implementation of a full monthly wage system. Currently, production workers at Hyundai Motor are paid on an hourly basis, with overtime, special work allowances, and performance bonuses added. As a result, monthly income fluctuates according to working hours. In contrast, the full monthly wage system demanded by the union would reduce such fluctuation and provide a fixed salary, ensuring a consistent monthly income.

The extension of the retirement age has been a long-standing demand. The union is calling for the retirement age to be extended to a maximum of 65, in line with the start of national pension benefits. Currently, Hyundai Motor's retirement age is 60. However, from age 61, workers can be rehired for one more year under a "skilled reemployment" system, but only as contract employees rather than regular staff.

Now that the union has secured the right to strike, there is a possibility that the company may soon present its initial proposal for negotiations.

Last year, negotiations were concluded after the union carried out three partial strikes.

This content was produced with the assistance of AI translation services.