Hyundai Union to Hold Three-Day Partial Strike After Talks Collapse

On July 8, the United Auto Workers Union of Hyundai Motor Company announced a partial strike from July 13 to 15 after labor and management failed to reach an agreement during their 15th round of wage and collective bargaining negotiations. During the strike period, the union will legally halt operations for two hours each day. The decision was made at a meeting of the Central Dispute Response Committee held at the Ulsan plant. On July 8, management submitted a new proposal offering an increase of KRW 89,000 in base wages, performance bonuses equivalent to 350% of base wages, an additional bonus of KRW 10 million, and 15 shares of treasury stock per employee. Compared to its previous offer made the day before, this proposal raised base wages by KRW 5,000, increased performance bonuses by KRW 500,000, and added three more shares of treasury stock. However, the union deemed the offer still below expectations and noted that both sides had not agreed on a date for the next negotiation round. The union stated it would resume talks only after the company presents a more forward-looking proposal. Hyundai’s union action could influence the stance of unions at other automakers. GM Korea’s union secured legal strike authorization on July 6 and plans to negotiate with management until July 9. Meanwhile, Kia’s union intends to hold a full-scale struggle declaration rally on July 9. Both unions are primarily demanding performance bonuses equal to 30% of operating profits and an extension of the retirement age. All three automakers have recently reported strong financial results. Hyundai Motor expects second-quarter revenue of KRW 49.9367 trillion, up 3.4% year-over-year. Kia forecasts Q2 revenue of KRW 31.8435 trillion, an 8.5% year-over-year increase, and recorded record-high first-half sales of 1,630,988 vehicles. GM Korea exported 270,252 vehicles in the first half, a 12.0% year-over-year rise, with exports accounting for 98.1% of total sales. Although robust earnings have strengthened unions’ bargaining positions, industry observers generally believe the likelihood of a full-scale strike remains low. One key reason is the 15% tariff imposed by the U.S. on imported vehicles, which has created a situation where revenues are growing but profits are struggling to keep pace. Additionally, the total duration of Hyundai’s current strike—six hours—is significantly shorter than last year’s cumulative 16-hour walkout.