Hyundai Motor Proposes Base Salary Increase of 101,000 Won... Union Declares "Negotiations Breakdown"

Hyundai Motor Labor and Management 2024 Wage Negotiations

Hyundai Motor Company proposed a first offer in this year's wage negotiation talks that included a basic salary increase of 101,000 KRW, but the labor union rejected it and declared the negotiations broken down.

On the 13th, at the 8th wage negotiation meeting held at the Ulsan plant, Hyundai Motor proposed a basic salary increase of 101,000 KRW, a management performance bonus of 350% + 14.5 million KRW, a quality improvement incentive bonus of 100% to commemorate the achievement of 100 million cumulative global sales, and the issuance of 20 shares of stock.

Additionally, separate from the annual social contribution fund of 6 billion KRW, the company proposed the creation of a 'joint labor-management fund' where 10,000 KRW per employee from this year's proposed performance bonus would be contributed by employees, and the company would contribute the same amount.

They also proposed a 'salary rounding down' system that donates amounts less than 1,000 KRW from monthly wages to underprivileged groups, the establishment of a 100 billion KRW support fund for parts suppliers, an annual contribution of 5 billion KRW to support the construction of smart factories for parts companies, and support for future competitiveness enhancement education programs as win-win measures.

Representatives of labor and management at Hyundai Motor Company are holding the 2024 wage negotiation introductory meeting in the companion room of the Ulsan plant main building.
[Photo by Hyundai Motor]

The union rejected the proposal, stating it did not meet the expectations of its members, and walked out of the negotiation venue. Previously, the union had demanded from the company a basic salary increase of 159,000 KRW (excluding step increments), a performance bonus of 30% of last year's net profit, a 900% increase in bonuses, the introduction of a 4-hour workday on Fridays, and an extension of the retirement age linked to age-based national pension benefits.

The union applied for dispute mediation to the Central Labor Relations Commission on the same day and is expected to hold a special delegates' meeting next week to discuss a strike. If the union decides to strike this time, it will be the first in six years since 2018.

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