The labor union of Hyundai Motor (005380.KS) has resolved to declare a labor dispute amid stalled wage negotiations this year, beginning preparations for a strike in earnest.
The union held an extraordinary delegates' meeting Tuesday at the Hyundai Motor Cultural Center in Buk-gu, Ulsan, and unanimously passed a resolution to declare a labor dispute. It also formed a central dispute response committee, completing its internal restructuring to fully shift into a strike posture.
Procedures for launching a strike are also accelerating. The union plans to hold a strike vote among all members Wednesday. On Thursday, the result of the labor dispute mediation it had requested from the National Labor Relations Commission (NLRC) is expected to be announced.
To secure the legal right to strike, the union must meet two conditions: approval from a majority of all members and a "mediation suspension" decision from the NLRC. If the NLRC determines that the gap between labor and management is too wide and decides to suspend mediation, the union will secure the legal right to engage in a labor dispute, after which it plans to establish specific strike methods and schedules.
Hyundai Motor's labor and management held a total of 11 rounds of negotiations beginning with an introductory wage negotiation meeting on the 6th of last month, but failed to reach an agreement. The union declared a breakdown in negotiations on the 12th, and there has been no clear progress in the working-level talks that have continued since.
The key issues in this year's wage and collective bargaining negotiations are the scale of the wage increase, along with future job security and expanded welfare benefits suited to the industry's transition period. The union is demanding a monthly base pay increase of 149,600 won (excluding seniority-based raises), payment of performance bonuses equal to 30% of last year's net profit, and an increase in bonuses from 750% to 800%. It is also demanding guarantees on employment and working conditions related to the introduction of artificial intelligence (AI), implementation of a full monthly salary system, a reduction in working hours without increasing labor intensity, and the hiring of new personnel. In particular, the union has demanded extending the retirement age to a maximum of 65, linked to the timing of National Pension benefit eligibility.
