The labor dispute between Hyundai Motor and its union is intensifying, with the union warning that it will raise the level of industrial action if the company fails to present a more favorable proposal in ongoing wage negotiations.
The Hyundai Motor branch of the Korean Metal Workers' Union (KMWU), which is currently conducting partial strikes, said management must come forward with a "more progressive" offer before the union's strike committee meets on July 16.
In a newsletter distributed to union members on Monday, the union criticized the company for what it described as a lack of meaningful progress in negotiations.
"Neither working-level discussions nor formal bargaining are taking place at the moment," the union said. "Management's responsibility is to prevent the situation from worsening by presenting a revised proposal as soon as possible."
The union reiterated its key demands, including a higher performance bonus, a 50-percentage-point increase in the annual bonus rate from 750% to 800%, a practical extension of the retirement age, the reinstatement of dismissed workers, and the withdrawal of lawsuits and asset seizure claims against union members.
It also warned that negotiations would remain suspended unless the company changed its stance.
"If there is no movement from management by the July 16 strike committee meeting, stronger industrial action will be decided," the union said, adding that a prolonged labor dispute could not be ruled out under the current circumstances.
Although the union said it is not determined to reach a settlement before the summer vacation period, it stressed that it remains open to negotiations if the company submits a meaningful proposal.
Alongside its strike activities, the union plans to launch a public awareness campaign from mid-July through mid-August to explain the purpose of the strike and the role of organized labor to the general public.
The latest confrontation comes after 15 rounds of collective bargaining failed to produce an agreement on wage increases and other key issues.
The union began a three-day partial strike on July 13, with each shift stopping work for two hours. On July 15, the final day of the action, Hyundai Motor workers are also participating in a nationwide strike organized by the Korean Metal Workers' Union.
Industry observers warn that if the dispute escalates into full-scale or prolonged strikes, it could disrupt vehicle production and affect Hyundai Motor's global supply chain. However, analysts also note that labor and management have historically reached last-minute agreements after periods of intense negotiations, leaving room for a negotiated settlement in the coming weeks.
