Hyundai Motors Ulsan Plant (Image courtesy of Hyundai Motor)
SEOUL, May 20 (Korea Bizwire) – With extending the retirement age emerging as a key issue in this year’s wage and collective bargaining negotiations at major South Korean companies, discussions on the matter are expected to take place at Hyundai Motor, a leader in the country’s automotive industry.
On May 19, the Dong-A Ilbo reported that the Hyundai Motor branch of the Korean Metal Workers’ Union recently held a provisional delegates’ meeting and confirmed their demand to link an extension of the retirement age to the national pension eligibility age.
Currently, eligibility for the national pension starts at 63, but it will increase to 65 starting in 2033. In line with this change, the Hyundai Motor union is calling for the company’s retirement age to be raised from the current 60 to as high as 64. The Kia Motors union is also expected to make a similar demand to management.
Unions at Hyundai Heavy Industries, Hyundai Samho Heavy Industries, and Hyundai Mipo Dockyard—affiliates of the HD Hyundai Group—delivered a joint wage demand to management on May 17, seeking an extension of the retirement age from the current 60 to 65.
The Federation of Korean Trade Unions is also advocating for extending the retirement age to 65 to match the national pension eligibility age, and is considering forming an alliance with political parties on this issue.
Meanwhile, the Dongkuk Steel Group recently agreed through wage negotiations to raise its retirement age from 61 to 62.
However, most companies are taking a cautious stance on extending the retirement age, with some arguing that it is premature to do so.
“It could negatively impact youth employment,” said an official at a major corporation, adding, “Legally mandating a retirement age extension could cause significant disruption given the diverse situations companies face.”
The business community believes discussions on extending the retirement age should be accompanied by reforms to the wage system and increased labor flexibility.
M. H. Lee (mhlee@koreabizwire.com)
