Starting with Hyundai Motor Group, major corporations in Korea, including those in the automotive, shipbuilding, and steel industries, are increasingly entering strikes, raising concerns in the industrial sector. As the impact of tariffs from the United States intensifies, if production and export disruptions also occur, the burden and losses for corporations are expected to increase.
The Hyundai Motor union began a partial strike from the previous day through the 5th. On the second day, the 4th, workers on the morning and afternoon shifts each went on strike for two hours, and on the 5th, a four-hour strike is scheduled. The total strike time is 16 hours.
This is the first strike by the Hyundai Motor union in seven years. The Hyundai Motor union completed six consecutive years of collective bargaining without conflict from 2019 to last year, but this year it is at an impasse with management over issues such as wage increases and retirement age extension.
The current Hyundai Motor strike is creating an atmosphere that influences labor-management negotiations across the automotive industry, including Kia. As Hyundai Mobis, which is part of the Hyundai Motor union, participates in the strike, the Kia union will conduct the fourth main negotiation following the sixth practical negotiation from the previous day. The Kia union is demanding the introduction of a four-day workweek, wage increases, and performance-based pay.
Earlier, the GM Korea union, which had faced rumors of withdrawal due to the impact of U.S. tariffs, conducted a partial strike from the 1st to the 3rd of this month. The GM Korea union is opposing the company's efforts to sell assets, such as service centers, and is demanding wage increases.
The shipbuilding industry has also entered a phase of significant strikes. The HD Hyundai Heavy Industries union, the largest shipbuilding union in Korea, conducted four-hour partial strikes on the 2nd and 3rd and is entering a seven-hour strike on this day and the 5th. Along with demands for wage increases, they are also opposing the merger of HD Hyundai Heavy Industries and HD Hyundai Mipo for market entry into the U.S. This marks the first simultaneous strike by the Hyundai Motor and HD Hyundai Heavy Industries unions in nine years.
The steel industry is also experiencing deepening labor-management conflicts. The Hyundai Steel non-regular worker union filed charges against the management of Hyundai Steel, including Minister Chung Eui-sun of Hyundai Motor Group, for unfair labor practices on the 27th of last month while demanding direct negotiations. The POSCO union is also considering its first strike in the company's history after the 5th, demanding a 7.7% wage increase.
The steel industry, hit hard by a 50% tariff from the U.S., is facing increased profitability burdens due to fluctuations in raw material prices and a slowdown in the global economy. If production disruptions due to strikes occur, there is a possibility that the weakening competitiveness of the steel industry will spread shocks to upstream industries such as automotive and shipbuilding.
The business community believes that if the Yellow Envelope Law (revisions to Articles 2 and 3 of the Trade Union Act) is implemented, future labor-management conflicts may intensify. The Yellow Envelope Law, passed in a Cabinet meeting on the 2nd, is expected to take effect in March next year after a six-month grace period.
The Korea Enterprises Federation expressed concerns about business uncertainty from collective bargaining in the coming year and a decline in overseas investment during its first official meeting with the Ministry of Employment and Labor after the passage of the Yellow Envelope Law. Minister Kim Young-hoon noted, "We are well aware of the burdens on corporations due to the law's implementation," and stated, "Irresponsible negotiations and illegal strikes are absolutely unacceptable."