[Car Talk Forest] Retirement Age Extension Conflict: "A Demand of the Times" vs "Causing Youth Unemployment"

Hyundai Motor Company Headquarters in Yangjae-dong, Seoul [Image source=Yonhap News]

[Asia Economy Reporter Changhwan Lee] A hot issue currently heating up the automotive industry is the extension of the retirement age.

Labor unions of major domestic automakers such as Hyundai Motor Company, Kia, and Korea GM are pushing to extend the current retirement age from 60 to 65.

In particular, the Hyundai Motor union, which is currently negotiating wages with the company, is strongly demanding the extension of the retirement age, arguing that there is a gap without income until the National Pension payment period after retirement.

Lee Sang-soo, head of the Hyundai Motor union branch, said, "Major advanced countries such as the UK, the US, Germany, and Spain have either abolished the retirement age or extended it to 65," adding, "Extending the retirement age is a demand of the times."

The company is negative about this. They explain that as the production process is increasingly automated and with the advent of electric vehicles, there is already an excess of manpower, so extending the retirement age would make it difficult even to hire new personnel.

As the company is not actively pursuing the extension of the retirement age, the automotive industry unions are pushing for legislation. If the extension of the retirement age is stipulated by law, the company will have no choice but to comply.

The unions of the three domestic automakers held a press conference at the National Assembly in March, stating, "We have repeatedly requested the extension of the retirement age through collective agreements in individual labor-management relations, but it was not accepted due to company refusal," and "The government should resolve labor-management conflicts through legislation on the extension of the retirement age."

From this month, the three unions are also conducting a national petition to the National Assembly demanding amendments to Chapter 4 of the "Act on Prohibition of Age Discrimination in Employment and Promotion of Employment for Older Persons (Older Workers Employment Act)."

However, voices opposing the extension of the retirement age are also emerging among frontline employees. It is known that mainly younger workers oppose the extension. A petition has also been posted on the Blue House's national petition site.

The petitioner criticized, "At a turning point where the industry is shifting to eco-friendly vehicles and requires talent capable of responding to change, the union is not changing and is shouting for the extension of the retirement age of the baby boomer generation under the pretext of being skilled workers to preserve themselves."

The petitioner introduced themselves as an MZ generation (Millennial + Z generation) field worker at one of the three major automakers. They emphasized, "Extending the retirement age will make it difficult for companies to hire competent talent and will cause youth unemployment."

As the retirement age extension issue spreads beyond labor-management conflicts to intergenerational conflicts, there are forecasts that labor negotiations in the automotive industry this year will not be smooth.

Hyundai Motor's labor and management have held several wage and collective bargaining negotiations so far, but it is known that they are still at an impasse on several issues including the extension of the retirement age. Will the negotiations be completed on time? Finding a 'clever solution' that satisfies everyone does not seem easy.

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