Hyundai Motor and GM Korea, as well as HD Hyundai Heavy Industries, HD Hyundai Mipo, and HD Hyundai Samho, have either entered or will enter into partial strikes due to difficulties in wage and collective agreement negotiations. The automotive industry has hit another hurdle with a union strike in the midst of having to respond to tariffs from the United States, and the shipbuilding industry, which must participate in the Korea-U.S. shipbuilding support project 'Make America Ships Great Again' (MASGA), is also facing challenges.
The Hyundai Motor Labor Union (Metal Workers' Union Hyundai Motor Division) held a central dispute countermeasure committee meeting on the 2nd regarding this year's wage and collective agreement negotiations and decided to enter into a partial strike from the 3rd to the 5th. This marks the first strike by the Hyundai Motor union in seven years. The morning and afternoon shifts will strike for 2 hours on the 3rd and 4th and for 4 hours on the 5th. Approximately 42,000 union members will participate in the strike.
The company proposed a second offer that included a monthly base salary increase of 95,000 won, a performance bonus of 400% plus an additional 14 million won, traditional market gift certificates worth 200,000 won, and 30 shares of stock. However, the union rejected the company's offer, believing that the company has the capacity for further wage increases given last year's operating profit and the partial alleviation of tariff risks in the United States.
Since the initial meeting on June 18, the Hyundai Motor management and the union have held negotiations 20 times but have not reached an agreement, ultimately leading the union to decide on a strike. Previously, the Hyundai Motor union demanded a base salary increase of 141,300 won (excluding step increases), an extension of the retirement age to a maximum of 64 years, the introduction of a 4.5-day work week, and an increase in bonuses. The union plans to hold the next central dispute countermeasure committee meeting on the 9th to discuss the future direction of negotiations if the company does not present a revised proposal by the 5th, when the partial strike occurs.
The GM Korea union, another automaker, has begun a partial strike for 4 hours a day from the 1st to the 3rd. The union is demanding that the company reconsider the closure of its direct maintenance centers and is urging it to dispel concerns regarding rumors of withdrawal from Korea.
The Metal Workers' Union Hyundai Heavy Industries Division (HD Hyundai Heavy Industries union) also conducted a 4-hour partial strike from 1 p.m. to 5 p.m. on the 2nd. This partial strike will continue on the 3rd, with a joint strike rally involving the unions of the three HD Hyundai shipbuilding companies (HD Hyundai Heavy Industries, HD Hyundai Mipo, and HD Hyundai Samho) scheduled. The strike hours are expected to increase on the 4th and 5th.
The Hyundai Heavy Industries management and labor have held negotiations 20 times since starting preliminary meetings for the 2025 wage agreement on May 20, through the end of August but failed to reach a consensus. During this process, the Hyundai Heavy Industries union conducted five partial strikes.
On July 18, the Hyundai Heavy Industries management and labor prepared a tentative agreement that included a base salary increase of 133,000 won and an encouragement payment of 5.2 million won. However, it was rejected in a member vote. The Hyundai Heavy Industries union is demanding an extension of the retirement age and changes to the performance bonus calculation criteria.