Expresses "Regret Over Strike" to Union
U.S. Tariffs, EV Chasm as "Gray Rhino" Risks
"Let's Focus on Issues Shared by All Employees"
As the Hyundai Motor labor union launched a strike for the first time in seven years, the company expressed deep regret and called for finding common ground through dialogue and negotiation. The company indirectly suggested that the focus should be on compensation such as base salary and performance bonuses, rather than on the union's key demand for extending the retirement age.
According to the industry on the 5th, Lee Dongseok, President of Hyundai Motor, released his first official statement after the union's strike, saying, "Despite the company's sincerity and efforts, I have no choice but to express deep regret that the union ultimately chose the path of a strike. While the company's proposal may be lacking or disappointing, I believe that continuing additional negotiations and seeking common ground through dialogue and consultation is the most appropriate approach for our 38-year labor-management relationship."
He added, "In recent negotiations, I have mentioned the 'gray rhino' theory several times. Numerous risk factors are charging toward us like a giant gray rhino, kicking up dust, and if we ignore and neglect them, we will inevitably face irreversible damage." The gray rhino theory refers to situations where a crisis is fully predictable in advance, but its impact is underestimated and not properly addressed. During negotiations, the company expressed concerns that operating margins in the second half of the year could decline due to U.S.-imposed tariff pressures as well as a slowdown in electric vehicle demand (the 'chasm').
The company indirectly rejected the demand for extending the retirement age. President Lee said, "Rather than becoming fixated on issues where interests may differ by job category, rank, or generation, we have presented the best possible proposal with the intention of focusing on performance compensation for all employees, which is a common issue for everyone, and moving toward a conclusion."
The Hyundai Motor union began a partial strike for three days from September 3 to 5, arguing that the company's second proposal made during negotiations on September 2 was insufficient compared to union members' performance. At that time, the company offered the following: a base salary increase of 95,000 won, a performance bonus of 400% plus 14 million won, 30 shares of company stock, and a 200,000 won traditional market gift certificate.
This year, the union is demanding: a base salary increase of 141,300 won (excluding step increases), performance bonuses amounting to 30% of last year's net profit, inclusion of various allowances in ordinary wages, and increases or new establishment of allowances by job category or duty. In addition, the union has proposed extending the retirement age from the current 60 to the end of the year prior to the start of national pension payments (up to age 64), introducing a 4.5-day workweek, and raising bonuses from 750% to 900% of ordinary wages.
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