Hyundai Motor wage talks collapse after two weeks; union sets partial strike for next Wednesday

Nearly two weeks of intensive wage negotiations between Hyundai Motor and its union ended without agreement Wednesday. Management tabled a third offer at the 15th round of talks, raising both base pay and performance bonuses, but the union declared the session over, saying further negotiations were pointless. The standoff now appears headed toward a partial strike.

The two sides met Wednesday for the 15th round of main-table talks but wrapped up after just two and a half hours. Lee Jong-cheol, head of the Hyundai Motor branch of the Korean Metal Workers' Union, told management that "further negotiations are meaningless" and said the company should request a new session only when it was prepared to make a more forward-looking offer.

Immediately after the talks ended, the union convened its second central dispute committee meeting to finalize next steps, including an expanded overtime ban and a partial strike schedule. The union had already secured the legal right to strike and began refusing overtime work Monday, stepping up pressure on management.

The two sides had resumed main-table talks Thursday after a 20-day suspension that followed the union's declaration of a breakdown on June 12. From Monday through Wednesday, they held four rounds of talks in a single week — the 12th through 15th sessions — in an intensive push to reach a deal, but ultimately failed to close the gap.

At Wednesday's session, management presented its third wage offer. The proposed base pay increase was 89,000 won ($58) per month, up 5,000 won from the second offer. The performance bonus package was revised to 350 percent of monthly pay plus 10 million won in cash and 15 shares of company stock, compared with 350 percent plus 9.5 million won and 12 shares in the previous offer — an increase of 500,000 won in cash and three additional shares.

Hyundai Motor had initially proposed a base pay raise of 79,000 won along with a performance bonus of 350 percent plus 9 million won and 10 shares at the 12th round of talks. It raised the offer to 84,000 won in base pay and 350 percent plus 9.5 million won and 12 shares at the 14th round before nudging it up again Wednesday.

The union judged the offer to fall short of members' expectations. It is demanding a base pay increase of 149,600 won, a performance bonus equivalent to 30 percent of last year's net profit, and an 800 percent increase in regular bonuses. Management's third offer represents 59.5 percent of the union's base pay demand — 60,600 won less per month than what the union is seeking.

The two sides also remain far apart on how performance bonuses should be calculated. The union argues that because Hyundai Motor posted record sales of 186 trillion won and net profit of 10.36 trillion won last year — the best results in the company's history — 30 percent of that profit should be distributed as bonuses. Thirty percent of last year's net profit amounts to about 3.11 trillion won, which divided among the company's 73,335 domestic employees as of end of last year works out to roughly 42.4 million won per person.

On non-wage demands, the two sides made some progress, agreeing on wording for a handful of items. Discussions covered allowance increases, including a skills-development allowance for core technology roles and a commuter bus fare adjustment. However, major sticking points — extending the retirement age, hiring additional workers, converting to a fully salaried pay system, and guaranteeing employment and working conditions amid AI adoption — remained deeply contested.

After the talks ended, the union went straight into its second central dispute committee session. It plans to stage a partial strike on July 15 in line with the Korean Metal Workers' Union's planned general strike that day. The day shift will walk out from 11:30 a.m. to 3:30 p.m., and the night shift from 8:10 p.m. to 12:10 a.m. the following day — four hours each. The action will follow brief branch-level rallies and proceed as a walkout at shift's end.

The Hyundai Motor union's partial strike serves both as a pressure tactic in the stalled wage talks and as part of a broader labor offensive coordinated with the Korean Confederation of Trade Unions and the Metal Workers' Union. The confederation has called a general strike for July 15, demanding direct negotiations with large employers, industry-wide bargaining and stronger protections for basic labor rights. The Metal Workers' Union has also directed its affiliated workplaces to strike for at least four hours that day, and the Hyundai Motor union is aligning its action with both the wage deadlock and the wider union movement's timetable.

The union had already secured the legal right to strike before Wednesday's talks. A strike authorization vote held June 24 passed with 92.03 percent support among those who voted and 86.65 percent approval relative to total membership. The following day, the National Labor Relations Commission ruled that the gap between the two sides was too wide to bridge through mediation and issued a decision suspending conciliation, formally clearing the way for a legal strike.

For Hyundai Motor, the prospect of a partial strike adds to an already difficult year. The first half was marked by parts supply disruptions, recalls and logistics burdens, while the second half is packed with major new model launches — including the new Avante, the new Tucson, a GV80 facelift hybrid and the Genesis flagship electric SUV GV90. Should the overtime ban and partial strike overlap with those launch schedules, production disruptions and delivery delays could mount significantly.