Hyundai Labor Union Demands Car Purchase Discounts for All Retirees

This undated photo released by Hyundai Motor Co. shows the company’s management and labor union holding wage talks.

SEOUL, June 22 (Korea Bizwire) — Hyundai Motor Co.’s labor union has requested that management provide discount benefits for purchasing new cars not only to retirees with significant tenure at the company but to all retirees.

This demand has reportedly been included in this year’s list of collective bargaining items.

Every year at Hyundai, approximately 2,500 employees retire, and the labor union is advocating for a 25 percent discount benefit for all retirees, irrespective of their years of service.

With this benefit, retirees will be able to purchase a 50-million-won (US$38,640) car for only 37.5 million won every two years.

Additionally, this benefit allows Hyundai retirees to sell their cars every two years at a price higher than the discounted price they initially paid.

“Apart from a few employees recruited based on their experience, most retiring employees have worked in the company for over 25 years. Therefore, the ‘more than 25 years’ requirement won’t significantly impact the majority,” said a company official.

This year’s list of demands by the labor union also includes raising the basic salary by 184,900 won and distributing bonuses equivalent to 30 percent of the previous year’s net income.

M. H. Lee (mhlee@koreabizwire.com)