Hyundai Motor union to extend partial strikes over wage deadlock

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Hyundai Motor union to extend partial strikes over wage deadlock

Synopsis

Hyundai Motor's 40,000-strong union is doubling down on partial strikes after 16 rounds of wage talks collapsed — and the timing could not be worse. The automaker has already posted 10 consecutive months of falling global sales, with July down 5.1 percent partly due to earlier stoppages. A resolution looks distant as the two sides remain billions of won apart.

Key Takeaways

Hyundai Motor's union announced fresh partial strikes on Wednesday, Thursday, Friday and into the following week after the 16th round of wage talks failed.
The 40,000-member union has now staged a cumulative 44 hours of partial strikes since negotiations began.
The union demands a 149,600-won monthly pay rise and a bonus equal to 30% of net profit; management has offered 80,000 won plus stock.
Global sales in July fell 5.1% year-on-year to 318,454 units , marking 10 consecutive months of decline.
Domestic sales dropped 14.4% in July; overseas sales fell 3.2% .

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.

Point of View

600-won demand and management's 80,000-won offer is not a rounding error; it reflects a structural disagreement over how profits should be shared. With Chinese EV rivals eating into Hyundai's global volume, a prolonged strike is a luxury the company can ill afford. The risk is that each additional strike day becomes a data point in a longer narrative of institutional drift at one of Asia's flagship automakers.
NationPress
18 Aug 2026

Frequently Asked Questions

Why is the Hyundai Motor union going on strike?
The union is striking over a wage deadlock after 16 rounds of negotiations failed to bridge differences. Workers are demanding a 149,600-won monthly base pay increase and a bonus equal to 30 percent of net profit, while management has offered a smaller 80,000-won raise plus stock and a fixed performance bonus.
How long have the Hyundai strikes been going on?
The union has staged a cumulative 44 hours of partial strikes since wage talks began. The latest plan extends stoppages through the current week and into the following Monday and Tuesday.
How have the strikes affected Hyundai Motor's sales?
Hyundai Motor's global sales fell 5.1 percent year-on-year to 318,454 units in July, partly due to production disruptions from partial strikes that month. This was the company's 10th consecutive month of declining global sales.
What is Hyundai management offering the union?
Management has offered an 80,000-won monthly base pay increase, a performance bonus equivalent to 350 percent of monthly salary plus 10 million won, and 15 shares of company stock — well below the union's demands.
What happens next in the Hyundai labour dispute?
Further strike days are confirmed into next week, with no immediate talks scheduled. A prolonged standoff risks additional production disruptions and could pressure Hyundai's output targets for the remainder of the year.
Nation Press
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