"800% Bonus Increase" Hyundai Motor Union to Launch First Full-Scale Strike in 10 Years...Empty-Handed After 41 Days of Talks

Additional Strikes for Five Days Starting August 19
Full-Scale Strike on August 21... First in 10 Years

The Hyundai Motor labor union will launch a full-scale, eight-hour strike on August 21. This marks the most intensive escalation of strike action since the main wage negotiation, which resumed after 41 days, ended without significant progress. It is the first full-scale walkout by the Hyundai Motor union in ten years, following the 2016 collective bargaining agreement.

According to the Hyundai Motor union and related sources on August 18, labor and management held the 16th round of main negotiations at the Ulsan Plant at 2 p.m. that day, but concluded talks after only about three hours. Despite the union and management representatives sitting down at the bargaining table together for the first time in 41 days since the 15th round last month on the 8th, no substantial progress was achieved.

On the 12th, morning shift workers at Hyundai Motor Ulsan Plant in Myeongchon Main Gate, Buk-gu, Ulsan, are leaving work early due to a partial strike lasting four hours. The Hyundai Motor Union will continue the strike for 4 to 6 hours daily from this day until the 18th. Yonhap News

Soon after the negotiations, the union notified members, stating, "What was offered in today's practical talks was meager," adding that management did not present any additional wage proposals or bonus increases. The union also explained that there was no meaningful progress on key issues it had hoped for, such as extending the retirement age and reinstating laid-off workers.

No date has been set for the next round of main negotiations either. Both sides agreed to confirm progress on key issues through working-level consultations before finalizing the date for resuming talks.

On the afternoon of August 18, the union held its 6th Central Strike Countermeasures Committee meeting and adopted the "Central Countermeasures Committee Guideline No. 6." According to this plan, partial strikes of four hours per shift will take place on August 19 and 20, as well as on August 24 and 25.

For the first shift (morning team) and regular first shift, strikes will be held from 10:50 a.m. to 3:30 p.m.; for the second shift (afternoon team), from 7:30 p.m. to 12:10 a.m. the following day, each for four hours. The regular day shift will cease work from 12:40 p.m. to 4:40 p.m., and office staff will stop work from 1:00 p.m. to 5:00 p.m.

Notably, on August 21, a full eight-hour strike will be carried out. On that day, the union plans to organize a rally at the Hyundai Motor Group headquarters in Yangjae-dong, Seocho-gu, Seoul, involving expanded union leadership, on-site committee members, various committee representatives, and volunteer union members.

"Prolonged deadlock in negotiations has been handled according to management's demands, but the outcomes fall short of what we consider real progress," the union stated. "Therefore, we are staging a strike as a show of strong will to exert pressure on management." However, the union maintained its existing policy of continuing efforts to reach agreement through negotiations and withholding strike action on negotiation days if main talks are resumed.

For this year’s wage negotiations, the union is demanding an increase of 149,600 won in base pay, a performance bonus equivalent to 30% of last year's net profit, and an 800% increase in regular bonuses. In addition, key demands include extending the retirement age and the reinstatement of laid-off workers.

Specifically, the union is calling for the retirement age extension to be implemented via a supplementary agreement as soon as relevant laws are amended, and to open discussions on introducing a wage peak system. Regarding the reinstatement of laid-off workers, the union proposed that after confirming individuals’ intentions and relevant legal conditions, discussions on potential reinstatement by the end of the year could take place.

In contrast, during the 15th round of negotiations last month on the 8th, management offered an 89,000 won base pay increase, a performance bonus of 350% plus 10 million won, and 15 shares of company stock. The union, however, rejected this offer, saying it fell short of member expectations.

Major differences remain between the parties regarding bonus increases, retirement age extension, and reinstatement of laid-off workers. Management insists these issues fall outside the scope of this year’s wage negotiations. In the case of reinstating laid-off workers, the company claims there is insufficient justification to rehire employees who were lawfully dismissed. As for the retirement age extension, management argues that it requires prior discussions on laws and institutional frameworks within the political arena and cannot be resolved exclusively through collective bargaining.

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