Hyundai Motor Begins Wage Talks... Union Demands Retirement Age Extension and 4.5-Day Workweek

Basic Wage to Increase by 141,300 Won
Performance Bonus Set at 30% of Net Profit

On June 18, labor and management at Hyundai Motor Company held a preliminary meeting for this year's wage and collective agreement negotiations at the Ulsan plant, officially starting the bargaining process.

Attending the meeting were Lee Dongseok, CEO of Hyundai Motor Company, Seo Ssangyong, Vice Chairman of the Korean Metal Workers' Union, Moon Yongmun, head of Hyundai Motor's union branch, and other representatives from both sides. They exchanged views on the direction and schedule of this year's negotiations.

Labor and management representatives of Hyundai Motor Company holding a preliminary meeting for this year's wage and collective agreement negotiations. Photo by Yonhap News

Previously, the union submitted its demands to the company, which include: ▲ an increase of 141,300 won in the monthly base wage (excluding seniority raises, in accordance with Metal Workers' Union guidelines); ▲ payment of a performance bonus equivalent to 30% of last year's net profit; ▲ inclusion of various allowances in ordinary wages; and ▲ increases or new introductions of allowances by job category or duty.

The union also demanded an extension of the retirement age from the current 60 to the end of the year prior to the start of National Pension payments (up to a maximum of 64), as well as the introduction of a 4.5-day workweek. In addition, the union proposed increasing the bonus from the current 750% of ordinary wages to 900%.

Experts in labor-management relations predict that this year's negotiations will see a tug-of-war not only over wages, but also over issues such as extending the retirement age and reducing working hours.

Hyundai Motor Company's labor and management have successfully concluded wage and collective agreement negotiations for six consecutive years since 2019 without any strikes.