Hyundai Motor Union Holds Rally to Kick Off Wage and Collective Bargaining Talks (Yonhap)
SEOUL, Sept. 2 (Korea Bizwire) — South Korea’s flagship carmakers and shipbuilders are facing waves of strikes as labor negotiations falter, highlighting rising tensions over wages, retirement policies and corporate restructuring at a time of global economic uncertainty.
At Hyundai Motor, the company’s union staged its first walkout in seven years, launching a series of partial strikes from August 3 to 5 after weeks of deadlocked talks. More than 42,000 workers are expected to stop work for two to four hours each day, disrupting production at the Ulsan plant by an estimated 1,500 vehicles daily.
The union is pressing for higher wage increases and an extension of the retirement age, arguing that Hyundai’s record operating profit of 14.2 trillion won ($10.6 billion) last year and the easing of U.S. tariff risks justify greater concessions.
Management, pointing to slowing electric vehicle demand and persistent trade uncertainties, has countered with a package including a 95,000-won monthly pay raise, performance bonuses and stock grants. Union leaders have warned of broader strikes if no progress is made by August 9.
Striking HD Hyundai Heavy Industries Union (Image provided by HD Hyundai Heavy Industries )
Shipbuilders have also been roiled. HD Hyundai Heavy Industries workers have staged repeated partial strikes since May, rejecting a tentative deal that offered wage hikes and bonuses. Unions say booming order books warrant larger base salary increases, while management insists its offer is already the most competitive in the sector.
On August 3, workers at Hyundai’s three shipyards — Hyundai Heavy, Hyundai Mipo and Hyundai Samho — are planning a joint strike to escalate pressure.
The disputes come as both industry and government prepare for delicate geopolitical and economic challenges, including a joint U.S.–Korea shipbuilding initiative known as MASGA.
Executives and labor leaders alike acknowledge that prolonged unrest could undermine the country’s standing just as U.S. President Donald Trump is expected to attend the Asia-Pacific Economic Cooperation summit in South Korea this fall.
The unrest has also been colored by the recent passage of the so-called “Yellow Envelope Law,” which expanded the scope of legal labor disputes. Unions have begun targeting management decisions once deemed off-limits, including mergers and asset sales.
At Hyundai Heavy, labor leaders have vowed joint resistance to a planned merger with Hyundai Mipo, citing fears of job losses and production cuts. At GM Korea, workers have walked out in protest not only over wages but also management’s plan to sell idle property.
Taken together, the strikes mark one of the most turbulent labor seasons in recent years, underscoring how shifting laws and economic headwinds are reshaping the delicate balance between South Korea’s industrial giants and their workforces.
M. H. Lee (mhlee@koreabizwire.com)
