Hyundai Motor union begins 10-year strike, halting production for 16 hours

Hyundai Motor's labor union initiated a full-scale strike on August 21, marking the first such action in a decade. The strike has brought all production lines at the company's Ulsan, Jeonju, and Asan plants to a standstill. This widespread work stoppage is projected to result in a significant production loss, estimated at approximately 334 billion won (around $285 million) for the day.

The strike affects both the morning and afternoon shifts, with each group working eight hours, leading to a total of 16 hours of halted production. Hyundai Motor's average production rate is 460 vehicles per hour. Considering the average selling price of a vehicle at 45.44 million won, the 16-hour strike is expected to impact the production of about 7,360 vehicles.

The union's demands are substantial, including a 149,600 won increase in base pay, a performance bonus equivalent to 30% of the previous year's net profit, and an increase in the supplementary bonus from 750% to 800%. They are also pushing for an extension of the retirement age to a maximum of 65 years. Additionally, the union seeks guarantees for employment and working conditions in light of AI implementation and proposes a 4.5-day work week, along with the rehiring of laid-off workers.

Hyundai Motor's management has countered with an offer of an 89,000 won increase in base pay, a performance bonus of 350% plus 10 million won, and the distribution of 15 company shares. However, the union has rejected this proposal. The union urged the company on August 20 to engage in negotiations for a "complete retirement age extension and fair distribution."

Further partial strikes are planned for August 24 and 25, with each shift working four hours. If the company does not present a new proposal, the union plans to convene its central dispute resolution committee on August 25 to decide on additional strike measures. The company's stance is that rehiring laid-off workers is difficult, and extending the retirement age requires prior legislative discussion by politicians.