Key Points
- The Hyundai Motor union will extend partial strikes into next week in an effort to secure higher wages.
- Despite 15 rounds of negotiations this year, the parties failed to reach an agreement on a wage increase.
- The union is demanding a monthly base salary increase of 149,600 won and a bonus equal to 30 percent of last year's net profit.
- It was reported that the company offered only an 80,000 won increase in base salary.
By the Numbers
Workers at South Korea's largest automaker, Hyundai Motor, announced they will continue their partial strikes next week as their wage increase demands were not met. The company's union stated that employees in day and night shifts will walk off the job for four hours each day from Wednesday to next Friday.
There have been 15 rounds of wage negotiations between the union and company management this year, but the parties could not bridge their differences over wages. The 40,000-member union is demanding a 149,600 won increase in the monthly base salary and a performance bonus equal to 30 percent of last year's net profit.
The company, which generated a net profit of 10.36 trillion won (approximately 7.07 billion dollars) last year, proposed only an 80,000 won increase in wages. The extension of the strikes raises concerns that there could be disruptions in the production processes of the giant automaker, which also manufactures popular models such as the Sonata and Palisade.
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Frequently Asked Questions
- Why are Hyundai Motor workers going on strike?
- The 40,000-member union, having failed to reach an agreement with the company during wage negotiations, is demanding a higher increase to the monthly base salary and a profit-based performance bonus.
- How much of an increase are the workers demanding for the wage increase?
- The union is demanding a 149,600 won increase in the monthly base salary and a payment equal to 30 percent of the net profit generated last year.
- How will these strikes affect Hyundai's production?
- Because four-hour daily walkouts are taking place across day and night shifts, South Korea's largest automaker is expected to experience disruptions on its production line.
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