Hyundai Motor workers leaving work (Image courtesy of Yonhap)
ULSAN, South Korea, June 12 (Korea Bizwire) – Hyundai Motor’s labor union is demanding compensation of 20 million won (approximately $14,500) per worker in this year’s wage and collective bargaining talks, citing the Supreme Court’s 2024 ruling on the inclusion of regular bonuses in base pay calculations.
Although the court limited retroactive application of the decision to the plaintiffs involved, the union argues that compensation should be paid to all eligible workers in the form of “consolation” or “encouragement” payments for lost wages.
According to industry sources on Thursday, the union formally approved the demand during a special delegates’ meeting held in late May, where 53.4% of attendees supported the proposal. The union contends that each of Hyundai’s roughly 41,000 unionized workers is owed 20 million won covering the period from 2022 to 2024, totaling an estimated 820 billion won ($590 million).
The Supreme Court ruled in December 2024 that fixed bonuses must be factored into regular wages, a decision that increases the base used to calculate overtime, holiday pay, and other allowances. However, the ruling was applied only to the original plaintiffs — two Hyundai union members and a group of current and former Hanwha Life employees — in the interest of legal stability.
Hyundai Motor headquarters in Yangjae-dong (Image courtesy of Yonhap)
Despite this, Hyundai’s union insists workers who could have won similar lawsuits deserve compensation. Union officials estimate the 20 million won figure based on the average difference in benefits workers would have received had bonuses been included in base pay over the past three years.
“This wasn’t a random request,” a union spokesperson said. “Many members feel they were denied money they rightfully earned.”
The company is unlikely to welcome the proposal. Legal experts warn that the union’s demand essentially challenges the court’s decision to restrict retroactive application, potentially sparking major legal and contractual disputes. If negotiations proceed, the outcome could influence other companies that previously excluded bonuses from base wage calculations.
Hyundai Motor and the union are set to begin formal negotiations on June 18. In addition to the compensation demand, the union is seeking a monthly base pay increase of 141,300 won, a bonus equivalent to 30% of last year’s net profit, extension of the retirement age from 60 to as late as 64, and the introduction of a progressive severance pay system.
Kevin Lee (kevinlee@koreabizwire.com)
