Hyundai Motor Strike Causes KRW 2.3 Trillion in Sales Losses... Manufacturing Workdays Lost Rise 45%

KEF Releases "2026 Analysis of Labor-Management Relations in the Manufacturing Sector"
Labor Disputes Decline, but Workdays Lost Increase
Performance Bonus Demands Expand to Include Bonuses Tied to Company Profits
"Uncertainty at Industrial Sites Is Growing"

Although the number of labor-management disputes in the manufacturing sector declined, the number of workdays lost due to strikes rose sharply. Analysts say labor conflicts are dragging on as demands for wage increases expand to include performance bonuses tied to company profits.

According to the “2026 Analysis of Labor-Management Relations in the Manufacturing Sector,” released by the Korea Enterprises Federation (KEF) on November 8, there were 88 labor-management disputes in manufacturing as of the end of September this year, down from 99 during the same period last year. In contrast, workdays lost totaled 489,190, up 45.2% from 336,800 a year earlier. In other words, while the number of disputes fell, prolonged strikes caused greater disruptions to production.

The KEF said recent labor conflicts have expanded beyond demands for wage increases to include requests that companies pay performance bonuses equal to a certain percentage of their profits. The Hyundai Motor union demanded a bonus equal to 30% of net income, the HD Hyundai Heavy Industries union demanded 30% of operating profit, and the HL Mando union demanded 15% of operating profit as special bonuses.

HD Hyundai Heavy Industries' labor union staged a four-hour partial strike on the 11th amid difficulties in this year's wage and collective bargaining negotiations. Union members participating in the strike chant slogans. HD Hyundai Heavy Industries union, Yonhap News

Hyundai Motor reached a wage agreement on August 31, but partial strikes and the first eight-hour full-scale strike in 10 years took place during the negotiations. The industry estimated production disruptions at 55,200 vehicles and sales losses at at least KRW 2.3 trillion. The agreement included a KRW 100,000 increase in base pay, performance bonuses of 400% of base pay plus KRW 12.7 million, and 15 shares of stock.

HD Hyundai Heavy Industries and Hanwha Ocean also concluded their wage and collective bargaining negotiations in late October, following strikes and protests involving workers occupying high-altitude structures. HD Hyundai Heavy Industries agreed to a KRW 120,000 increase in base pay, a one-time payment of KRW 11.5 million, and an additional payment equal to 200% of base pay. Hanwha Ocean agreed to a KRW 140,000 increase in base pay and a one-time payment of KRW 8.5 million.

The labor dispute at HL Mando remains unresolved. The union is continuing to refuse overtime and weekend work and to stage partial strikes, demanding special bonuses tied to operating profit and an extension of the retirement age, among other measures. HL Mando is a major auto-parts supplier that provides brakes and steering systems to Hyundai Motor and Kia. It accounts for 50.3% of brake supply, 50.4% of steering-system supply, and 75.8% of suspension-system supply, raising concerns that a prolonged dispute could affect vehicle production and partner companies.

The KEF noted that demands concerning management decisions, such as tying performance bonuses to profits and hiring additional workers, could intensify labor-management conflicts. It stressed that reasonable negotiations and compromise between labor and management are needed to reduce uncertainty at industrial sites.

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