[Editorial] Hyundai Union Demands 30% of Net Profit... Who Will Be Responsible for the Future?

The labor union at Hyundai Motor has escalated its demands, seeking a staggering 30% of the company's net profit for performance bonuses, as reported by Dong-A Ilbo. This aggressive stance, coupled with a push for a 'full monthly wage system' that guarantees fixed pay regardless of reduced working hours from automation, signals a potential conflict. With Hyundai's net profit having fallen 22% last year and facing geopolitical risks that hinder exports, the company is at a critical juncture.

Dong-A Ilbo frames these demands as 'unreasonable' and a threat to Hyundai's future. The article points out that the company needs to increase its R&D investment, which currently stands at about 3% of sales—half that of competitors like Tesla and BYD. Fulfilling the union's demands would deplete the funds crucial for investing in next-generation technologies such as autonomous driving and eco-friendly vehicles. The editorial board expresses concern that such demands could lead to a vicious cycle where investor confidence wanes, leading to capital flight and further weakening the company's competitiveness.

The article criticizes the union's tactics, describing them as a self-serving pursuit by a privileged group that ignores broader societal concerns and the company's long-term health. It contrasts the union's demands with the needs of shareholders, who would see reduced dividends, and argues that this approach is increasingly out of touch with public sentiment. Dong-A Ilbo calls for a more mature and responsible approach from the union, urging them to abandon their 'selfish desire for exclusive performance gains' and consider the company's overall well-being and future.