As Hyundai Motor's management and union wrapped up this year's wage and collective agreement talks, GM Korea is escalating the intensity of its partial strikes, and Kia is expected to decide soon whether to strike. With follow-up negotiations over tariffs with the United States hitting a snag, the spark of union struggle has not gone out, keeping uncertainty in the auto industry alive.
According to Hyundai Motor on the 16th, the union approved the tentative wage and collective agreement the previous day with 52.9% in favor in a vote of union members. Although partial strikes occurred for the first time in seven years from the 3rd to the 5th as the company and union showed differences during talks, the dispute was settled without a full strike. As a result, the Hyundai Motor union will receive a 100,000 won increase in monthly base pay, a performance bonus of 450% plus 15.8 million won, 30 shares, and 200,000 won in traditional market gift certificates.
Among domestic automakers, only GM Korea and Kia have yet to conclude wage and collective bargaining. Earlier, Renault Korea and KG Mobility finished their talks without conflict. The GM Korea union plans a four-hour partial strike on this day and six hours each on the 17th and 18th. With the first and second shifts, the fixed daytime shift, and office staff each striking for four to six hours, there will be little time when the factory's machines are running overall.
The GM Korea union is steadily increasing the intensity of its strikes. Until early last week, the phrase "suspend strike directives upon resumption of talks" had been included in its action guidelines, but it has now been removed. Two consecutive days of six-hour partial strikes are also a first this year. The GM Korea union is demanding a 141,300 won increase in monthly base pay, a performance bonus of 41.36 million won, and the withdrawal of plans to sell nine company-run service centers and idle land at the Bupyeong plant. The company and union were said to be continuing talks on the afternoon of this day.
The Kia union also declared a breakdown in talks with management at the fifth round of wage and collective bargaining on the 11th and began industrial action procedures. The Kia union is demanding a 141,300 won increase in monthly base pay and 30% of last year's operating profit (about 3.8 trillion won) as a performance bonus. It is also pushing to extend the retirement age to 64 and to introduce a four-day workweek. The Kia union plans to hold a strike ballot on the 19th to decide whether to strike. However, with Hyundai Motor in the same group having reached a deal, the view is that the Kia union is unlikely to actually strike.
With unions' autumn offensive continuing, management uncertainty in Korea's auto industry is proving hard to resolve. From the 16th (local time), the United States is cutting tariffs on Japanese automobiles from 27.5% to 15%, but Korea remains subject to 25% as follow-up tariff talks with the United States are deadlocked.
An automotive industry official said, "As the tariff shock each company faces is bound to grow in the second half, they need to wrap up labor talks as soon as possible and actively move to overcome the crisis."