Hyundai Motor Union Approves Strike Vote... 71.80% in Favor

If the Central Labor Relations Commission Decides to Suspend Negotiations, Strikes May Occur

Hyundai Motor Company labor and management held a preliminary meeting for the 2022 wage negotiations on May 10 in the Donghaeng Room of the Ulsan Plant main building. [Image source=Yonhap News]

[Asia Economy Reporter Kiho Sung] As Hyundai Motor Company's labor union is moving toward a strike amid difficulties in this year's wage negotiations, union members have also approved the strike.

Hyundai Motor's union announced on the 2nd that in the strike authorization vote held the day before among all union members (46,568), 34,436 members (71.8% of the total membership) voted in favor out of 40,958 voters (voter turnout 87.9%).

With the strike authorization vote passed, if the Central Labor Relations Commission decides to suspend mediation on the 4th, the union will obtain the legal right to strike. The union is expected to convene the Strike Countermeasure Committee on the 6th to discuss the strike schedule. If the management does not present a comprehensive proposal, it is highly likely that the strike will begin in mid or late this month before the summer vacation.

If Hyundai Motor's union goes on strike this year, it will be the first strike in four years. From 2019 to last year, the union reached agreements without disputes considering the Korea-Japan trade dispute and the COVID-19 situation. Although strike authorization votes were held and passed in 2019 and last year, actual strikes did not occur.

The union is currently demanding a base salary increase of 165,200 KRW (excluding step increases), a 30% performance bonus based on net profit, and the adjustment of allowances. They have also separately requested new personnel recruitment, extension of retirement age, job security, abolition of the wage peak system, and the establishment and investment in domestic factories related to the future car industry. The management has not yet presented a comprehensive proposal.