Negotiations on wages and collective bargaining agreements between Hyundai Motor Company and its labor union have collapsed.
The labor union announced the collapse, stating that it demanded the management to present a comprehensive proposal during the 17th round of negotiations held at the Ulsan factory headquarters on the 13th, but management did not comply.
In the future, the union can apply for mediation of the dispute to the Central Labor Relations Commission, receive a decision to suspend mediation, and hold a strike vote. If a majority of union members approve, they can legally strike.
The union has demanded an increase in the basic wage of 141,300 won (excluding seniority increments), the payment of a performance bonus equivalent to 30% of last year's net profit, the inclusion of various allowances in ordinary wages, and the increase or establishment of allowances based on job categories and duties.
Their demands also include extending the current retirement age of 60 to the end of the year before the commencement of national pension payments (maximum 64), introducing a 4.5-day workweek, and increasing bonuses from 750% to 900% of current ordinary wages.
Management said, "I regret that the union has declared a collapse during a difficult period for the domestic and international business environment due to tariffs and other factors," adding, "We will seek points of agreement through in-depth discussions during the upcoming mediation period."
Meanwhile, the management and labor union concluded negotiations without strikes for six consecutive years from 2019 to last year. Last year, the Hyundai Motor Company labor union secured the right to strike, but a tentative agreement was reached just before the strike.