Hyundai Motor Union Confirms Demands to Eliminate Short-Term Jobs After Retirement and Extend Retirement Age

Ulsan Plant producing Hyundai Ioniq 5

[Asia Economy Reporter Choi Dae-yeol] The Hyundai Motor Company labor union has decided to demand the company eliminate the contract worker system (short-term contract workers) in this year's wage negotiations. Currently, the company operates a senior contract worker system where employees over the retirement age of 60 sign short-term contracts based on the required processes and manpower. It appears they have settled on a direction to abolish these contract positions to effectively extend the retirement age.

According to industry sources on the 21st, the Hyundai Motor union recently finalized their wage negotiation demands at an extraordinary delegates meeting and plans to send them to the company soon. The demands include a base salary increase of 165,200 KRW (excluding step increases) and a performance bonus of 30% of last year's net profit.

Separately from the wage negotiations, the union also plans to demand the establishment of new domestic factories for future car industries, the attraction of electric vehicle module lines to existing plants, and the abolition of contract positions except for temporary processes. There has been a negative sentiment within and outside the union regarding the company increasing contract workers without hiring new personnel.

In particular, the union has decided to focus on abolishing the senior contract worker system to extend the retirement age beyond 60. The senior contract system, introduced in 2019, employs retirees who wish to continue working as short-term contract workers with wages comparable to new hires.

The union is expected to argue that the existence of the senior contract system itself proves the need for manpower, thus necessitating retirement age extension. On the other hand, the company must consider public opinion surrounding retirement age extension and the atmosphere among younger employees who prefer wage increases over retirement age extension. It is said that the gap between labor and management positions is wide and there is little room for compromise.

It is reported that labor and management at the company plan to hold a wage negotiation introductory meeting around the 10th of next month. The newly launched Hyundai Motor union leadership this year is classified as having a strong stance, and the possibility of labor disputes is already being anticipated.