Hyundai Motor Union Requests "25% Discount on New Cars for All Retirement Age Retirees"

Included in this year's collective bargaining demands
Currently for employees with over 25 years of service

The Hyundai Motor labor union has requested that the "25% discount on new cars every two years" program, which was previously provided only to retirees with over 25 years of long-term service, be expanded to all retirees.

According to Hyundai Motor's Ulsan plant on the 21st, the union included this demand in this year's collective bargaining agreement proposal. The Hyundai Motor union stated, "The purpose is to eliminate inequality among union members."

Approximately 2,500 employees retire annually from Hyundai Motor upon reaching retirement age. The union demanded a 25% discount regardless of their length of service. If the union's demand is accepted, retirees could purchase a 50 million KRW vehicle for 37.5 million KRW every two years.

Hyundai Motor Company Labor and Management, 2023 Wage and Collective Bargaining Meeting Introduction
[Photo by Hyundai Motor Company]

In fact, it is known that Hyundai Motor retirees benefit financially because even if they sell their vehicles on the used car market every two years, the resale price exceeds the price they originally paid.

Some argue that since most retirees have more than 25 years of service, the "over 25 years" requirement may not have a significant impact.

Additionally, the union's collective bargaining demands this year include a base salary increase of 184,900 KRW (excluding step increases), a performance bonus of 30% of the previous year's net profit (including stocks), and a 900% bonus payment.

Separate demands include extending the retirement age to 64 to align with the National Pension receipt age, preparing personnel operation plans related to the new electric vehicle plant, and responding to employment changes in existing powertrain sectors.

Other demands include increasing the housing support fund from 26 billion KRW to 52 billion KRW, expanding the range of employee discount vehicle models, raising holiday travel allowances from 800,000 KRW to 1,000,000 KRW, increasing fuel allowances by 50,000 KRW, making 10 minutes of meal time paid, and raising summer vacation allowances from 300,000 KRW to 1,000,000 KRW.

The union plans to hold a rally for union members in front of the main building of the Ulsan plant on the 21st to resolve to win the collective bargaining agreement.