Hyundai Motor Union Faces Strike Threat: 140,000 Won vs 80,000 Won Base Salary Increase

Hyundai Motor Proposes 87,000 Won Base Salary Increase
Performance Bonus of 350% Plus 10 Million Won and 10 Shares
Second Proposal Expected on September 2

Hyundai Motor Company has presented a proposal to the labor union in this year's wage and collective bargaining negotiations, centered on an increase of 87,000 won in base salary. The union, however, has rejected the proposal, judging it insufficient to meet the expectations of its members, and is now considering the possibility of a strike.

Hyundai Motor labor and management representatives held a ceremony for this year's wage and collective agreement on June 18 at the Ulsan plant. Photo by Hyundai Motor News Agency

According to industry sources on August 28, Hyundai Motor Company offered its first proposal during the 19th round of the 2025 wage and collective bargaining negotiations held at the Ulsan plant. The proposal included an increase of 87,000 won in base salary, as well as performance and incentive bonuses amounting to 350% plus 10 million won, and the granting of 10 shares of company stock (based on the closing price on the 27th). These rewards are intended to recognize the achievement of the company’s 2025 management goals, overcoming challenges in the second half of the year, and winning global automotive awards.

The union rejected the proposal, stating that it fell short of members' expectations, and demanded additional offers. Previously, the union had requested a base salary increase of 141,300 won (excluding step increases), a performance bonus equivalent to 30% of last year’s net profit, the inclusion of various allowances in the standard wage, and increases or new allowances by job category and duty. The union's demand to extend the current retirement age of 60 to the end of the year prior to the start of national pension payments (up to 64 years old) was also not accepted.

As a result, it is understood that the union is internally discussing the possibility of a strike. After declaring a breakdown in negotiations on the 13th, the union held a vote among its members on the 25th, with 90.93% voting in favor of a strike, thereby securing the right to strike. In addition, as a means to pressure the company, the union has decided to stop working overtime and participating in Saturday special shifts starting next month.

A union official stated, "Compared to last year's first proposal (101,000 won), this amount is extremely insufficient," adding, "If the second proposal is similar, we will have no choice but to go on strike." The second proposal is expected to be presented during the negotiations scheduled for September 2.