The labor union representing Hyundai Motor workers is set to launch its first full-scale strike in a decade, escalating a long-running dispute over wages, retirement age and employment conditions.
Hyundai Motor and its union held their 16th round of wage negotiations at the company’s Ulsan plant on Aug. 18, but failed to reach an agreement. The talks resumed after a 41-day gap, but the two sides remained far apart on key issues.
The union plans to stage four-hour partial strikes on Aug. 19 and 20, followed by an eight-hour full-scale strike on Aug. 21. It will then hold additional four-hour strikes on Aug. 24 and 25. Union members are also scheduled to stage a protest at Hyundai Motor Group’s headquarters in Seoul on Aug. 21.
The planned full-day strike would mark the first such action by Hyundai Motor’s union since 2016.
The biggest sticking points include the retirement age and the reinstatement of workers dismissed over past union activities. The union is demanding that the current retirement age of 60 be gradually extended to as high as 65, in line with the age at which workers become eligible for the national pension.
The union is also seeking an increase in annual bonuses and the reinstatement of dismissed union members.
Hyundai Motor, however, has argued that extending the retirement age should be addressed through changes to national legislation rather than decided by an individual company. The company has also proposed discussing the reinstatement of dismissed workers later this year rather than accepting the demand immediately.
The latest breakdown comes at a particularly sensitive time for Hyundai Motor. The automaker has been seeking to increase production and expand sales of new and higher-value vehicles in the second half of the year amid growing uncertainty in global trade and automotive markets.
Industry estimates suggest that previous partial strikes and refusals to work overtime have already caused production losses of more than 40,000 vehicles, with sales losses exceeding 1 trillion won.
Further strikes could put additional pressure on Hyundai Motor’s production and delivery schedules. The impact could be particularly significant for newly launched models, which require stable production volumes during the early stages of their market rollout.
The dispute could also affect Hyundai Motor’s suppliers, as disruptions at assembly plants can ripple through the automotive supply chain.
Industry watchers say the current dispute has developed beyond a conventional wage negotiation, with retirement age, job security and the reinstatement of dismissed workers emerging as structural issues between labor and management.
The duration of the strike is expected to be a key factor in determining its impact. If the two sides return to the negotiating table with revised proposals, the dispute could still be contained. If negotiations remain deadlocked, however, prolonged production disruptions could further increase the financial burden on Hyundai Motor and its suppliers.
