Hyundai workers begin 3-day partial strike over bonuses, job security
What's the story
Workers at Hyundai Motor Co. have started a three-day partial strike, demanding higher bonuses and job security against automation. The strike comes after last week's wage talks failed to reach an agreement. Production workers will leave their jobs two hours before the end of their shifts until Wednesday, with union leaders planning to reconvene on Thursday for further discussions.
Bonus negotiations
Union demands performance bonus linked to last year's net profit
The main issue in this year's negotiations is the union's demand for a performance bonus linked to 30% of last year's consolidated net profit. The request, once dismissed as a starting point, has gained momentum after Samsung Electronics and SK Hynix recently awarded massive bonuses to their chip workers. Hyundai workers are also facing automation and humanoid robots with plans of Atlas humanoid being deployed in factories from 2028.
Job security
Workers want management guarantees on income security before deploying robots
The union is demanding management guarantees on income security through formal negotiations before deploying Atlas robots. They also want a full monthly salary system to protect fixed incomes from an automation-driven reduction in human labor hours. The workers are also seeking an extension of the retirement age from 60 to 65 years, allowing them to work longer.
Proposal details
Hyundai's proposed salary hike rejected by union
During last week's talks, Hyundai had proposed an 89,000 won base-pay hike, a one-time performance bonus of 350% plus 10 million won and 15 company shares. However, the union rejected the offer as it didn't meet their expectations. The strike could lead to losses of over 18.7 billion won per hour in production costs, according to Yonhap News Agency.
Company stance
Hyundai warns against using industrial action for profit demands
Hyundai hasn't commented on the immediate impact of the strike. However, Choi Yeong Il, head of domestic production, called some worker demands unreasonable and warned against using industrial action for profit demands. He said past strikes have only resulted in irreversible production losses, lost wages, and harsh criticism from customers and the public.