Hyundai Korea Union Overwhelmingly Approves Strike as Labor Talks Stall

Hyundai Motor's Korean union recently approved a strike resolution by an overwhelming majority. Of the 39,668 union members, 94% participated in the vote, with 86.6% supporting the strike. The strike authorization will take effect after the Korea Central Labor Relations Commission decides on June 25 whether to terminate mediation. If mediation is terminated, the union will legally gain the right to strike and plans to convene a central strike strategy committee meeting on June 30 to finalize specific action plans. Since May this year, the union and management have held 11 rounds of negotiations but remain significantly divided on core demands. The union’s key requests include: a monthly base wage increase of approximately USD 96.82, performance bonuses equivalent to 30% of the company’s 2025 net profit, an increase in the bonus multiplier, and raising the retirement age to 65. The profit-sharing demand is particularly sensitive, as Hyundai Motor’s operating profit for 2025 has declined by 19.5% year-on-year, prompting management to adopt a cautious stance on substantial pay hikes due to concerns over heightened cash outflow pressures. For the first time, this round of negotiations includes structural provisions addressing artificial intelligence and robotics. Citing Hyundai’s “Atlas” humanoid robot project, the union is demanding job and income protections against reduced working hours caused by automation and advocating for the implementation of a fixed-salary system. Additionally, the union has referenced the recent labor agreement at Samsung Electronics to strengthen its bargaining position, elevating the talks into a national issue. If the strike proceeds, it would mark the second consecutive year of production halts at Hyundai’s Korean plants, potentially triggering ripple effects across the supply chain and disrupting vehicle deliveries in key global markets.