Hyundai Motor union set for first strike in seven years

(News1)

Hyundai Motor Co.’s labor union will stage a three-day partial strike beginning on Wednesday, its first walkout in seven years.

The union said Tuesday its central strike committee voted to hold two-hour stoppages for both morning and afternoon shifts on Wednesday and Thursday, followed by a four-hour strike on Friday.

Hyundai and its union had managed to wrap up collective bargaining talks for six straight years without a strike since 2019, navigating challenges such as the Covid-19 pandemic and trade tensions between Korea and Japan, but the gap has widened in 2025. The union argues that bonuses should be based on the previous year’s performance, while management contends that looming U.S. tariff hikes threaten earnings and leave little room to meet those demands.

The two sides have held 20 rounds of negotiations since mid-June without narrowing their differences. In the latest session, management’s latest offer included a 95,000 won ($68) monthly base pay hike, performance bonuses of 400 percent of base pay plus 14 million won, 200,000 won in traditional market vouchers, 30 company shares, and broader application of ordinary wage coverage to allowances. The union rejected the package, calling it insufficient to meet members’ expectations.

The union’s original demands included a 141,300 won increase in base pay (excluding seniority raises), performance bonuses equal to 30 percent of the 2024 net profit, an extension of the retirement age to 64 without loss of income, the introduction of a 4.5-day workweek, and higher annual bonuses.

Observers say the recent labor law amendment has emboldened unions. The law expands the definition of permissible strike actions and limits damage claims against unions, even though enforcement is delayed for six months.

“It is regrettable the union chose to strike without sufficient discussion,” Hyundai Motor said, adding it would seek a rational outcome that benefits both sides.

The HD Hyundai Heavy Industries Co. union also began a four-day partial strike on Tuesday. Around 6,500 members stopped work for four hours from 1 p.m. to 5 p.m. and plan to repeat the action on Wednesday. The stoppages will expand to seven hours each, from 9 a.m. to 5 p.m., on Thursday and Friday.

The union is demanding a 141,300 won base pay increase, extended retirement age, and a new formula for performance bonuses, with no agreement reached after 20 rounds of negotiations. Resistance has also intensified over the planned merger of HD Hyundai Heavy Industries and HD Hyundai Mipo Co. The union appears to be drawing on the new law as grounds to broaden its strike agenda such as restructuring, layoffs, and mergers, signaling a more aggressive strategy. The dispute also raises concerns about potential disruptions to the Korea-U.S. “Make American Shipbuilding Great Again” (MASGA) project.