Walkout could disrupt production of about 5,000 vehicles as labor tensions spread across auto industry Members of the Hyundai Motor branch of the Korean Metal Workers’ Union hold a rally in front of the automaker’s plant in Buk-gu, Ulsan, on May 13, to launch their campaign for this year’s collective bargaining negotiations. (Newsis) Hyundai Motor’s union kicked off a three-day partial strike Monday after wage and bonus negotiations with management stalled, stirring concerns about production disruptions and supply delays at South Korea’s largest automaker.Members of the Hyundai Motor branch of the Korea Metal Workers’ Union said it will halt work for two hours at the end of each shift from Monday through Wednesday.Workers on the daytime shift will leave at 1:30 p.m., two hours earlier than usual, while those on the evening shift will finish work at 10:10 p.m. As the company operates two shifts, production lines could be halted for up to four hours a day, or 12 hours over the three days.It marks the second consecutive walkout staged by Hyundai Motor employees during their yearly wage talks.Employees working outside the vehicle assembly lines, such as those in sales, maintenance and research at Hyundai Namyang research center, will decide how to participate based on the circumstances at their own worksites. The Union also plans to join a nationwide walkout organized by the metal workers’ union on Wednesday.Industry watchers estimate the walkout could disrupt production of roughly 5,000 vehicles and cut sales by over 200 billion won ($133 million). This is based partly on last year's 16-hour partial strike, which reportedly affected about 7,000 vehicles and cost more than 300 billion won in sales.The strike could pile pressure on Hyundai Motor as it coordinates global production and delivery schedules ahead of several vehicle launches planned for the second half of the year, including the Genesis GV90 and refreshed versions of the Genesis G80, G90 and Hyundai Santa Fe.The strike came after a last-ditch round of intensive negotiations failed to produce a compromise, despite holding 15 rounds of talks this year.The union is seeking a monthly base pay increase of 149,600 won and a bonus equal to 30 percent of last year’s net profit, among others.Management has offered an 89,000 won raise, a bonus worth 350 percent of monthly base pay, 10 million won in cash and 15 shares of Hyundai Motor.Choi Yeong-il, head of domestic production and chief safety officer at Hyundai, expressed regret over the walkout in a statement Friday, saying the company would not improve its offer simply because the union had chosen to strike.“Past strikes have left us only with irreversible production losses, lost wages and harsh criticism from customers and the public,” Choi said. “We are well aware that the company has never made an additional offer or compensated workers for wages lost simply because the union went on strike.”Despite the walkout, the two sides are said to be continuing informal negotiations to reach a settlement. The union plans to review the state of the talks Thursday before deciding whether to extend the strike or escalate its labor campaign.This year's auto industry wage talks were already expected to be tougher than usual. Samsung Electronics' and SK hynix's sizable performance bonuses tied to operating profit raised workers' expectations across the manufacturing sector.But automakers have less room to meet such demands as US tariffs and slowing global vehicle sales squeeze profitability, creating a gap that will likely complicate negotiations.Labor tensions are spreading to other Korean automakers, too. Kia's union held a rally last Thursday to declare an intensified campaign, demanding a bonus equal to 30 percent of the company's operating profit this year.Unionized workers at GM Korea have begun refusing overtime work, while Renault Korea’s union is preparing to hold a vote on whether to authorize a strike.
Hyundai Motor union launches three-day strike as pay talks stall
Hyundai Motor’s union kicked off a three-day partial strike Monday after wage and bonus negotiations with management stalled, stirring concerns about production











