Hyundai Motor Strike Widens, Losses Nearing 700 Billion Won Amid Pay Dispute

Hyundai Motor's labor union has escalated its partial strike, extending work stoppages to four hours per shift. This move is projected to result in revenue losses approaching 700 billion won due to production disruptions. The union's decision to increase strike hours follows a previous stoppage that already caused over 220 billion won in losses.

The primary obstacle in negotiations is a significant gap of approximately 40 million won in performance-based pay demands between the company and the union. The company proposed a base pay increase of 89,000 won, along with 350% in performance bonuses, 10 million won in lump-sum payments, and 15 company shares. In contrast, the union is demanding a base pay increase of 149,600 won, 30% of the previous year's net profit as performance bonuses, an 800% increase in bonuses, an extension of the retirement age, and a 4.5-day work week.

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The company's proposal is estimated to translate to 33 to 35 million won per union member, a difference of about 40 million won compared to the union's demands, making an agreement difficult.

Industry analysts estimate that the union's demand for 30% of net profit as bonuses, based on last year's earnings of 10.36 trillion won, could amount to over 3 trillion won in total performance pay. This translates to roughly 70 to 80 million won per union member, significantly higher than the 40 to 50 million won received last year and the 33 to 35 million won estimated from the company's offer.

Beyond pay, the union is also seeking the reinstatement of dismissed workers, consultation rights for the introduction of the next-generation humanoid robot 'Atlas' on the production line, and a 'full monthly salary' system to prevent wage reductions due to shorter working hours. The prolonged strike is expected to have a ripple effect on suppliers and logistics firms, exacerbating the challenges faced by Hyundai in a competitive global market.

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If the strike continues for a long time, not only will there be disruptions in the production of finished vehicles, but there will also be unavoidable chain damage to suppliers and logistics companies.