[Exclusive] Hyundai Motor’s ‘Illegal Strike Compensation’ Returns to the Supreme Court Again

All Four Lawsuits Dismissed, Company Files Reappeal
Business Community Protests: "Why No Damages for Illegal Actions?"

The lawsuit for damages resulting from the illegal strike by the Hyundai Motor Company irregular workers' union, which was remanded in the final trial, will be reconsidered by the Supreme Court following the company's objection. The Supreme Court had previously ruled in 2023 that no damages were required as there was no decrease in sales despite the illegal strike and sent the case back to the High Court. However, the company filed a rehearing to hold the union accountable, arguing that the strike clearly had a negative impact on sales. In the business community, considering that the amount of damages Hyundai demanded is about 300 million KRW, it is interpreted that the message is more about raising awareness of illegal strikes rather than actual compensation.

Hyundai Motor Company building in Yangjae-dong, Seoul. Photo by Jinhyung Kang aymsdream@

According to industry and legal sources on the 18th, Hyundai Motor Company filed an appeal last month against the remand judgment on damages in the lawsuit against the Hyundai Motor Company Irregular Workers' Union of the Korean Metal Workers' Union. This was in response to the Busan High Court Civil Division 6 ruling in February that, following the Supreme Court's remand, the union was not liable for damages related to sales decline and fixed cost losses.

Previously, members of the Hyundai Motor Company Irregular Workers' Union conducted illegal strikes in August 2012, demanding direct employment, including stopping the chair line at the Ulsan plant. In July 2013, they also occupied production facilities for 63 minutes. Hyundai Motor Company claimed damages of 318 million KRW from the union members, citing significant losses in fixed costs such as production line stoppage, damage recovery costs, labor costs, and insurance premiums due to the suspension of operations.

However, the Supreme Court ruled that even if production volume decreased due to illegal industrial action, if it is proven that sales did not decline as a result, the damage amount should be excluded from the calculation and remanded the case.

Hyundai Motor Company decided to file a rehearing, believing that there was a negative impact on sales due to the strike. They argued that the Supreme Court did not acknowledge the additional production carried out to prevent sales decline.

The business community is also closely watching Hyundai Motor Company's rehearing. Especially since a similar lawsuit is underway at Hanwha Ocean, the outcome of Hyundai's rehearing could have an influence. A Hyundai Motor Company official explained, "Currently, about 15 similar lawsuits are ongoing, so this case holds significant meaning."