Hyundai Motor union to extend partial strikes over wage deadlock
Synopsis
Key Takeaways
The labour union of Hyundai Motor announced on Tuesday, 18 August that it will continue staged partial strikes throughout the current and following week, after a 16th round of negotiations with management ended without a breakthrough on wages. The walkouts add fresh pressure on the South Korean automaker already grappling with 10 consecutive months of declining global sales.
Strike Schedule and Demands
The 40,000-member union has planned four-hour strikes on Wednesday and Thursday, an eight-hour strike on Friday, and further four-hour stoppages on the following Monday and Tuesday. Combined with earlier actions, the union has now staged a cumulative 44 hours of partial strikes since wage talks began.
The union is demanding a monthly base pay increase of 149,600 won (approximately US$105.6) along with a performance-based bonus equivalent to 30 percent of the company's net profit for the previous year.
Management's Counter-Offer
Hyundai Motor's management has put forward a more modest package: an 80,000-won monthly base pay hike, a performance bonus equivalent to 350 percent of monthly salary plus 10 million won, and 15 shares of company stock. The gap between the two sides remains wide, with no fresh talks immediately scheduled.
Sales Already Feeling the Strain
The escalating labour dispute is compounding an already difficult sales environment. Hyundai Motor reported that global vehicle sales in July fell 5.1 percent year-on-year to 318,454 units. Overseas sales declined 3.2 percent to 270,341 units, while domestic sales dropped sharply by 14.4 percent to 48,113 units.
The company attributed the weaker July performance to production disruptions from the partial strike that month and customers deferring purchases ahead of new model launches. This marks the automaker's 10th straight month of falling global sales — a streak that now stretches back nearly a year.
What's Next
With both sides still far apart and further strike days confirmed into next week, production disruptions are likely to persist. Industry observers note that a prolonged standoff could weigh on Hyundai's fourth-quarter output targets and further dent its global market share at a time when competition from Chinese automakers is intensifying. A resolution before the weekend appears unlikely given the scale of the wage gap.