Hyundai union weighs more strikes after 42,000-vehicle production hit

Hyundai Motor's labor union has decided to resume strikes as soon as the summer break ends, extending daily walkouts to as much as 12 hours across two shifts on selected days as wage and collective bargaining talks remain stalled. The union plans four-hour strikes per shift on Aug. 12 and 13 and six-hour strikes per shift on Aug. 14 and 18, while also refusing overtime and special shifts. The dispute has already caused major production disruption. Hyundai said cumulative strike time reached 60 hours after three rounds of partial strikes in July, and estimated production losses at 42,510 vehicles after also factoring in four instances of Saturday overtime refusal. The company said technical workers have lost about 1.92 million won per person in wages under the no work, no pay principle, while severance-pay losses for a technical worker born in 1967 with 30 years of service amount to 14.01 million won. Hyundai also published historical data linking prolonged strike periods to weaker performance. It said annual strikes ran from 2012 through 2018 after three strike-free years, and operating profit fell from 8.4 trillion won in 2012 to 2.4 trillion won in 2018. After a stretch without strikes from 2019, profit recovered to 15.1 trillion won in 2023 before easing to 14.2 trillion won in 2024 and then 11.5 trillion won after last year's strike, which ended a six-year strike-free run. The core bargaining issues remain unresolved. The union is demanding a 149,600-won monthly base pay increase, excluding seniority-based raises, and a performance bonus equal to 30% of last year's net profit, alongside the reinstatement of dismissed members and an extension of the retirement age. Hyundai says reinstatement, retirement age extension and bonus increases are not subjects for wage negotiations, and has indicated it would instead discuss wages and performance-bonus distribution if the union withdraws those three demands. The prolonged labor action is also creating operational risk as Hyundai tries to keep key new models on schedule, including the redesigned Tucson at its Ulsan plant.

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