Hyundai Motor Labor-Management Fails to Reach Agreement in 13th Wage Negotiation... Production Pressure on Palisade and Others

Key Issues Such as "30% of Net Profit as Performance Bonus" Remain Unresolved
Refusal of Overtime and Weekend Special Shifts Raises Production Disruption Concerns
Decision on Partial Strike to Be Made on July 8

The Hyundai Motor labor union and management were unable to narrow their differences on key issues during the 13th main round of wage negotiations this year. Starting from July 6, the union began refusing weekday overtime and weekend special shifts, and there are growing concerns about production disruptions as the union is scheduled to decide on a partial strike on July 8.

According to Hyundai Motor labor and management on July 6, both sides held the 13th round of main negotiations at the Ulsan plant that afternoon, but failed to reach a tentative agreement. The company proposed improvements such as an in-house certification system for core technology roles, better hazardous and high-temperature allowances, and enhanced treatment for re-employment of skilled workers. However, the union rejected these proposals, stating that they "do not meet the expectations of union members."

Hyundai Motor Company labor-management officials held a preliminary meeting for the 2026 wage negotiation on May 6th in the Donghaeng Room of the main building at Hyundai Motor Ulsan Plant. Hyundai Motor Company

On major demands such as extending the retirement age, hiring new personnel, implementing a full monthly salary system, and increasing bonuses by 800%, both sides maintained their existing positions. The labor and management agreed to discuss a comprehensive proposal again at the 14th round of negotiations on July 7. Regarding the extension of the retirement age and the recruitment of new employees, the company suggested implementation after legal amendments and further discussion through next year's negotiations, but the union demanded a definite answer within the current negotiations.

In particular, issues related to wages remain at a stalemate. The union is demanding a basic salary increase of 149,600 won (excluding automatic step raises) and payment of 30% of last year’s net profit as a performance bonus. In contrast, the company presented its first proposal on July 2, which included a basic salary increase of 79,000 won, a performance bonus equivalent to 350% of base salary plus 9 million won, and 10 shares of company stock, but the union refused the offer.

As the negotiations have dragged on, the union began a complete refusal of weekday overtime and Saturday special shifts, except for essential agreements, starting that day. It is reported that Hyundai Motor Ulsan Plant had planned 2 to 5 weekend special shifts per production line during July, and production lines for major models such as the Kona, Ioniq 5, GV70, GV80, Santa Fe, Palisade, Avante, and Tucson are expected to be affected.

Between January and May this year, Hyundai Motor’s domestic sales totaled 258,481 units, an 11.7% decrease compared to the same period last year. At a time when the company needs to make up for production volumes through overtime and special shifts in the second half of the year, a prolonged refusal of special shifts could put pressure on both domestic shipments and export schedules. Last year, a three-day partial strike by the union led to production disruptions of approximately 7,000 vehicles.

On the other hand, some agreements have been reached regarding the transition to future industries. Through a "special agreement for the transition to the future mobility industry," the labor and management agreed to jointly respond to future technologies including physical AI and robotics, and to share information related to new businesses. The company will notify the union once plans for new domestic businesses are finalized, and employment-related matters will be discussed together.

Regarding the operation of the Ulsan electric vehicle plant, both sides agreed to share key information such as the selection of subsequent models and production schedules, and the union will cooperate in improving productivity and quality. In the process of pursuing battery in-house production, expanding the production of core electrification components, and operating a next-generation hydrogen fuel cell plant with mass production targeted for 2028, the labor and management will consult on employment-related matters such as workforce operation, training, and job reassignment.

If a tentative agreement is not reached during the 14th round of negotiations, the union plans to hold the second Central Dispute Countermeasures Committee meeting on July 8 to discuss further action. In this case, the possibility of a partial strike will be discussed in addition to the ongoing refusal of special shifts.

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