Production Disruptions Hit 42,000 Units... Hyundai Motor Union to Decide on Additional Strike on August 11

Central Dispute Countermeasure Committee Convenes to Discuss Direction of Industrial Action
Union and Management Divided Over "Three Core Demands"
Domestic Sales Fall 14.4% in July Due to Strike

The wage negotiations between Hyundai Motor Company and its labor union face a critical juncture on August 11. Even during the summer vacation period, the two sides have failed to bridge their differences. With the union set to discuss whether to proceed with further strikes on this day, the situation stands at a crossroads between resuming negotiations and a prolonged strike.

On August 11, Hyundai Motor's union plans to hold a Central Dispute Countermeasure Committee (CDCC) meeting in the afternoon to discuss the direction of future industrial action. The union has escalated its actions with partial strikes lasting two hours per day from July 13 to July 15, and four hours per day from July 20 to July 22 and July 29 to July 31.

Afterward, Hyundai Motor employees entered their summer vacation. Although the company and the union had informal talks during the break, it is reported that no progress was made.

The main reason negotiations have stalled is the union's three core demands. The union is insisting on the reinstatement of dismissed workers, a preemptive agreement on retirement age extension prior to its legalization, and a 50% increase in bonuses. Management, on the other hand, emphasizes that since this negotiation is about wages, the company should focus exclusively on wage talks.

Choi Youngil, CEO of Hyundai Motor Company, stated in a message sent to employees on July 23, "The union is still holding firm on its three demands: reinstatement of dismissed workers, a preemptive agreement on retirement age extension prior to legalization, and a 50% increase in bonuses. As a result, we have not been able to find a breakthrough in negotiations. If the union independently revises these three demands, we will be ready to immediately present additional proposals, including those on wages and performance bonuses, and promptly resume negotiations."

Hyundai Motor has presented management proposals three times since last month. The first proposal included a monthly base pay increase of 79,000 won, a performance bonus of 350% plus 9 million won, and a grant of 10 shares in the company. The most recent, third proposal consisted of an 89,000 won increase in monthly base pay, a performance bonus of 350% plus 10 million won, and 15 shares in the company. In contrast, the union is demanding a 149,600 won increase in monthly base pay, as well as a performance bonus equivalent to 30% of the previous year’s net profit, indicating a substantial gap between the two sides.

During the three rounds of partial strikes organized by the union, Hyundai Motor is estimated to have experienced production disruptions affecting approximately 42,000 vehicles. If, at the CDCC meeting on this day, the union decides to escalate with additional strikes, the scale of losses is expected to grow further.

The strike has also led to a decrease in sales. In July, Hyundai Motor sold 318,454 units in the global market, a 5.1% decrease compared to the same month the previous year. Domestic sales also declined by 14.4% to 48,113 units. By contrast, Kia, which maintained production despite having the legal right to strike, sold 298,037 units globally, an increase of 13.4% compared to the previous year, with domestic sales also rising by 21.3%.

Regarding the decrease in production in July, Hyundai Motor stated, "Overall industry demand has contracted, and we have experienced production disruptions due to the strike, as well as pent-up demand for new vehicles. In the second half of the year, we plan to strengthen our sales momentum by introducing competitive new models and stabilizing production operations."

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