Hyundai Motor Union Finalizes Collective Bargaining Demands: "120,000 KRW Base Pay Increase and 30% Profit-Based Bonuses Requested"

[Asia Economy Reporter Woo Su-yeon] The Hyundai Motor Labor Union has finalized its wage and collective bargaining agreement (CBA) demands for this year, requesting a basic salary increase of 120,000 KRW and a performance bonus equivalent to 30% of last year's net profit.

On the 23rd, the Hyundai Motor Union held a temporary delegates' meeting at the Hyundai Motor Culture Hall in Buk-gu, Ulsan, and finalized this year's wage negotiation demands. The demands include a basic monthly salary increase of 120,304 KRW (excluding step increases), which is on par with the higher-level organization, the Metal Workers' Union, and a request to pay 30% of last year's net profit to union members and in-house partner company employees. The 30% level of Hyundai Motor's net profit last year (3.185 trillion KRW) amounts to approximately 950 billion KRW.

To ensure total employment security, the union also demands maintaining domestic factory production volumes and converting additional production volumes from overseas factories to domestic production, along with establishing win-win measures with parts suppliers. The extension and expansion of the senior contract system, which employs retirees on a short-term basis, and improvements in their treatment were also mentioned.

The Hyundai Motor Union is holding a temporary general assembly on the 22nd at the Hyundai Motor Culture Hall in Buk-gu, Ulsan, to finalize this year's wage negotiation demands. Photo by Hyundai Motor Union [Image source=Yonhap News]

The demands also include measures to prepare for the transition to an eco-friendly vehicle era. The union requested the construction of a dedicated electric vehicle production plant, the establishment of an operating plan for factories capable of small-lot, multi-product production, job transition training, and the construction of a new training center. Additionally, the union plans to demand the construction of a complex vision center including an automobile museum, measures related to the prevention of COVID-19, and the abolition of core time (core working hours) in future negotiations.

Based on these demands, the Hyundai Motor Union will hold a preliminary meeting with management on the 13th of next month, after the summer vacation, and begin full-scale negotiations. Since the CBA schedule was delayed due to COVID-19, the union leadership aims to reach an agreement before Chuseok.

Meanwhile, the Kia Motors Union has also been holding temporary delegates' meetings five times since the 15th and has entered the final stage of preparing its CBA demands. The Kia union has drafted demands for a basic salary increase of 120,304 KRW and a performance bonus equivalent to 30% of last year's operating profit and is discussing the details.

The draft includes demands for a 450 billion KRW investment to improve working conditions and increases in various allowances such as personal allowance, emotional labor allowance, and service allowance. It also contains demands to produce core parts for electric and hydrogen vehicles at Kia's domestic factories and to raise the delivery prices from parts suppliers. The Kia union is holding its sixth meeting today to continue discussions to finalize the demands.

This content was produced with the assistance of AI translation services.