Hyundai Motor CEO Choi Youngil Urges Union to Withdraw Three Key Demands: "Additional Wage Proposal Possible"

With the Hyundai Motor labor union announcing additional strikes due to the breakdown of this year's wage negotiations, CEO Choi Youngil of Hyundai Motor has urged the union to make a decision through a statement. The company has stated that if the union withdraws its key demands, it will present an additional proposal on wages and bonuses. However, the union is increasing the intensity of the strike, keeping pressure on the company.

According to Hyundai Motor on July 23, CEO Choi issued a statement titled "A Message to All Hyundai Motor Employees" and expressed concerns about the suspension of negotiations and the prolongation of the strike.

CEO Choi said, "The union is still holding on to its three main demands—reinstatement of dismissed workers, a prior agreement on extending the retirement age before legal revision, and a 50% increase in bonuses—which makes it difficult to find a breakthrough in negotiations." He added, "The current situation is deeply regrettable."

The company explained that more than two weeks of suspended negotiations and ongoing strikes have resulted in growing production disruptions and wage losses for employees. The company also emphasized that the reason for the delay in the "just compensation" demanded by the union is the union's insistence on difficult-to-accept core demands.

CEO Choi stated, "If the union independently withdraws these three demands, we are prepared to come up with an additional proposal, including wages and bonuses, and resume negotiations immediately. If an unacceptable demand is accepted under strike pressure, as in this year, it sets a precedent that undermines mature labor-management relations and can return us to the confrontational relationships of the past."

On the other hand, the union is escalating its actions, calling for further concessions from management. On this day, the Hyundai Motor labor union held a central dispute committee meeting and decided that from July 29 to 31, both the morning and afternoon shifts would each strike for four hours per day for three days. This follows previous strike actions—two hours per day from July 13 to 15, and four hours per day from July 20 to 22.

Wage negotiations between Hyundai Motor and the union have been effectively suspended since the 15th round of talks held on July 8, with both sides unable to narrow their differences.

In its third proposal, management offered to increase the monthly base salary by 89,000 won, pay 350% of the base salary as bonuses plus an additional 10 million won, and to grant 15 company shares per employee. However, the union has rejected this offer.

To conclude negotiations before the summer holidays, considering the need to announce a union general meeting, conduct a vote, and schedule a signing ceremony, July 24 is considered the last practical opportunity for talks. However, as the company has made the withdrawal of the three key demands a precondition for resuming negotiations, if a dramatic agreement cannot be reached, talks will be postponed until after the second week of August, increasing the likelihood of a prolonged strike.

As the labor and management at Hyundai Motor remain unable to bridge their differences over the key issues, prospects for a wage agreement before the summer break now appear uncertain, and concerns are growing that the strike may be prolonged.

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