SEOUL: “Hyundai Motor Union in South Korea Votes to Strike”, Hyundai Motor’s unionized workers in South Korea have voted in favor of potential strike action following stalled negotiations with the company. The talks centered on wage increases and extending the retirement age, according to the automaker’s union statement on Monday.
The union, representing over 43,000 members and one of South Korea’s largest, announced that nearly 90% of its members have voted to authorize a strike if Hyundai Motor does not meet their demands regarding wage increases and extending the retirement age.
If the strike proceeds, it would be the first such action in six years over wage negotiations at the South Korean carmaker. The potential disruption could impact production of popular vehicles destined for export, as Hyundai seeks to compensate for sluggish domestic sales.
“We are open to negotiations with the management if they are willing to change their stance,” a Hyundai Motor union official told Reuters. The official added that the union intends to proceed with working-level talks with the management in an effort to resolve the issues at hand.
Analysts caution that it is premature to determine if the union will indeed initiate a strike this year. However, they acknowledge that if a strike occurs, it could potentially affect Hyundai’s short-term sales, particularly in the United States, which is Hyundai’s largest revenue-generating market for its popular vehicles.
The union is seeking a minimum basic monthly pay increase of 159,000 won ($114.57) and performance pay equating to 30 per cent of Hyundai’s 2023 net profit. It is also demanding an increase in the retirement age to 64 from 60, as South Korea’s rising life expectancy and inadequate retirement pension payments prompt demands to be able to work for longer.
