Differences Over Retirement Age Extension in Hyundai Motor Wage Talks... Management Says "Implementation After Legalization"

Union: "Sufficient Public Consensus for Retirement Age Extension"

Calls for Abolishing the Wage-Peak System... "Ruled Unlawful"

CEO Choi Youngil: "Let's Focus on Future Survival"

The labor and management at Hyundai Motor Company, currently negotiating wage agreements, have clashed over the timing for introducing an extension to the retirement age. Both sides are also at a stalemate regarding the base salary increase and performance bonuses.

Hyundai Motor Company and Kia Yangjae Office Building. Hyundai Motor Group

According to the Hyundai Motor branch of the Korean Metal Workers' Union, both sides discussed the union's additional demands—including the reinstatement of dismissed workers to their original positions, retirement age extension, and recruitment of new personnel—during the fifth round of collective bargaining held on May 20.

The union stated regarding the implementation of the retirement age extension, "There is already sufficient public consensus and it is a global trend," adding, "The wage-peak system, which has been ruled unlawful as age discrimination, must also be immediately abolished."

The management's position is to focus on wage negotiations for this year, and to discuss the timing of the retirement age extension only after it becomes legally mandated. It was reported that Choi Youngil, CEO of Hyundai Motor Company, said, "Let us quickly conclude the negotiations by focusing on and selecting key agenda items," and, "I hope labor and management will concentrate on future survival rather than engaging in unproductive disputes."

Demands continued for the reinstatement of dismissed workers and the recruitment of new personnel. Hyundai Motor Company responded that, for dismissed workers, a willingness to change must come first, and that recruitment of new personnel requires mid- to long-term discussion in line with future industrial changes.

At the fourth round of collective bargaining held the previous day, opinions were divided over the criteria for a base salary increase and performance bonuses. The union argued that while operating profit has increased significantly, the rate of wage increase has been relatively low, and thus, a level of performance-based distribution befitting a global top three automaker is necessary. In response, management countered that operating profit is expected to decline by about 19.5% year-on-year and that clear criteria for performance bonuses are required.

CEO Choi stated, "The news of the Samsung Electronics strike is being reported in the media every day, and strikes at large corporations have significant social implications," adding, "Clear standards for wage and performance bonus payments are necessary. Let's find common ground through future discussions."

The union is demanding, for this year's wage negotiations, a monthly base salary increase of 149,600 won, performance bonuses equivalent to 30% of last year's net profit, and an increase in annual bonuses from 750% to 800%.

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