The Hyundai Motor Company labor union, which is currently negotiating wages and collective agreements, requested production information from the U.S. operations. During the negotiations, when it was mentioned that exports to the U.S. have decreased, resulting in poor performance, the intent is to examine whether the increase in local production has had an impact on the decrease in exports. It is interpreted as a claim that even if domestic production has decreased, the increase in overseas production should not affect wages. There are also analyses suggesting that since the U.S. production figures have already been made public, the union is building a case to disrupt the negotiations.
According to industry sources on the 12th, Hyundai Motor Company and the union conducted the 16th round of negotiations that day. The negotiations proceed with the aim of preparing a tentative agreement on wages and collective agreements, with the company presenting proposals that the union reviews to decide whether to accept.
The union has demanded an increase in the monthly base salary of 141,300 won (excluding seniority increments), a 30% performance bonus based on last year's net profit, a 900% bonus payment, extension of the retirement age, introduction of a 4.5-day workweek, and implementation of a progressive retirement severance system. The 17th round of negotiations is scheduled for the 13th.
During the 15th round of negotiations held on the 7th, the company conveyed its stance that the decrease in operating profit due to a decline in exports to the U.S. should be reflected in this year's wage negotiations. According to the Korea Automobile & Mobility Association (KAMA), the number of vehicles exported by Hyundai Motor Company to North America in the first half of this year was 355,041 units (including passenger and commercial vehicles). This is a decrease of 53.7% from 766,662 units during the same period last year.
In this negotiation, the union stated, "The decrease in exports that does not reflect the increase in local production is meaningless," and requested data on U.S. production volumes for 2025 from the company. Although exports to North America have decreased due to tariffs imposed by U.S. President Donald Trump, it cannot be said that the entire decrease is due to tariffs, and factors such as the operation of the Hyundai Motor Group Meta Plant America (HMGMA) in Georgia should also be considered.
The expansion of U.S. local production is one of the main points of conflict between labor and management. The gap between labor and management regarding the decrease in exports due to tariffs is reported to be significant. The union has stated that if the management does not present a proactive proposal, citing tariffs as a reason for reducing performance, they will continue to engage in strong protests.
An industry official noted, "The solution to reduce the impact of tariffs is to expand overseas production, but this leads to a reduction in union jobs. This is a hard part to bridge."
The Hyundai Motor Company labor union successfully completed wage negotiations without conflict for six consecutive years until last year. However, it did not escalate into a strike, and the negotiations for wage agreements have ended in failure each year. There are predictions in the industry that substantial negotiations will only take place after the union secures the right to protest.
According to the Labor Union Act, if negotiations break down, the parties can request mediation from the Central Labor Commission or similar bodies, and the mediation committee will either present a mediation proposal or decide to cease mediation. Once this decision is made, the union legally secures the right to protest.