Hyundai is facing significant production disruptions as the Hyundai Motor branch of the Metal Workers' Union enters its second consecutive week of industrial action, according to Chosun report. Starting today, the union has launched a three-day partial strike, effectively doubling the duration of previous walkouts to increase pressure on management over deadlocked wage negotiations.
The escalating labor dispute is expected to halt production lines for up to eight hours a day, severely impacting the automaker's output.
Strike Schedule and Operational Impact
The current labor action builds upon a series of two-hour partial strikes held last week. In an aggressive escalation, the union has extended the walkouts to four hours per shift daily. When combining the morning and afternoon shifts, Hyundai’s primary production lines face daily stoppages of up to eight hours.
The Central Dispute Countermeasures Committee outlined the specific strike schedule for union members:
Production Workers (Morning Shift): Work suspended from 10:50 AM to 3:30 PM.
Production Workers (Afternoon Shift): Work suspended from 7:30 PM to 12:10 AM the following day.
Permanent Day-Timers: Participating in the strike from 12:40 PM to 4:40 PM.
General Staff: Participating in the strike from 1:00 PM to 5:00 PM.
In addition to the daily walkouts, the union is maintaining a strict ban on weekday overtime and weekend shifts, further squeezing Hyundai’s manufacturing capacity.
The Core Dispute: Wages, Bonuses, and Retirement Age
The stand-off stems from a wide gap between management's offers and the union's demands. During the 15th round of negotiations, Hyundai Motors presented its third proposal, which the union promptly rejected.
Management's Proposed Offer
The company’s third proposal included a basic monthly salary increase of 89,000 KRW, a performance bonus structured as 350% of the basic salary plus an additional 10 million KRW, and the payment of 15 shares of company stock.
The Union's Demands
The union is firmly holding out for a much higher compensation package. Their demands include a basic monthly salary increase of 149,600 KRW, an 800% increase in bonuses, and a piece rate profit-sharing model equivalent to 30% of the previous year's net profit. Beyond financial compensation, the union is also demanding an extension of the mandatory retirement age and the reinstatement of laid-off workers.
"We will increase the intensity of the pressure with the general unity of our 40,000 members in the absence of forward-looking proposals from management," the union stated. However, union leadership noted they would "reserve the strike on the day of negotiations once the main negotiations resume."
What Lies Ahead for Hyundai?
The current three-day strike window concludes on the 22nd. On July 23rd, the union plans to convene the Central Dispute Response Committee to assess the situation and determine the next phase of industrial action based on whether management returns to the table with an improved offer.
For its part, Hyundai Motor Company has stated that it is actively continuing behind-the-scenes negotiations with union leadership and remains open to reaching a peaceful settlement. However, with 40,000 union members unified and production lines compromised, the automotive giant faces a critical week to avoid prolonged financial and operational damage.
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