Hyundai Motor's Ulsan plant production lines halted again as the union escalated partial strikes from 2 hours daily during 13-15 to 4 hours daily starting from the 20th, with both sides failing to narrow differences by the 24th deadline. The labor dispute centers on management's offer of an 89,000 won monthly wage increase, 350% bonus plus 10 million won, and 15 shares, while the union demands retirement age extension, reinstatement of dismissed workers, and bonus increases beyond wage negotiation scope. The strike occurs as Hyundai faces Q2 earnings pressure, with analysts projecting revenue of 48.8 trillion won (up 1.06%) but operating profit of 3.1 trillion won (down 14.08%), following a 30.8% operating profit decline in Q1 and 19.5% drop last year amid recurring annual labor conflicts.
Hyundai Motor Union Escalates Strike at Ulsan Plant
The Korean Metalworkers' Union Hyundai Motor branch conducted partial strikes for 2 hours daily on 13-15, then doubled the intensity to 4 hours daily starting from the 20th for three consecutive days. Industry analysts indicate negotiations must conclude by the 24th to avoid prolonged conflict, as talks pushed beyond early August summer vacation typically result in extended disputes.
Management Offers 89,000 Won Wage Increase Amid Union Demands
Hyundai Motor management proposed a monthly base salary increase of 89,000 won, performance bonuses of 350% plus 10 million won, and 15 company shares. The company stated the union is making demands unrelated to wage negotiations, including retirement age extension, reinstatement of dismissed workers, and bonus increases. The union cited difficulties in wage negotiations as the reason for strike action.
Strike Causes Estimated 18.7 Billion Won Revenue Loss Per Hour
Industry estimates place revenue loss at approximately 18.7 billion won per hour of strike action. Concerns emerged that production disruptions could reach astronomical levels when factoring in overtime refusals. The financial impact adds uncertainty for investors ahead of Q2 earnings announcement. Analysts surveyed by Yonhap Infomax project consolidated revenue of 48.8 trillion won (up 1.06%) but operating profit of 3.1 trillion won (down 14.08%) for Q2. Operating profit declined 19.5% last year and fell 30.8% in Q1.
![Hyundai Motor performance trends]()
Hyundai Motor performance trends [Source: Yonhap News file photo]
CEO Choi Young-il Urges Union to Reconsider Strike Action
CEO Choi Young-il issued a statement calling for rational judgment from the union. "What remains after strikes are accumulated production losses, wage damages, and external criticism," Choi stated. "Contrary to original intent, we are being driven toward strikes, blocked by the union's justification of dismissed worker reinstatement—not a negotiation subject—and retirement age extension and bonus increases, which are collective bargaining matters." Choi emphasized the need for labor and management to unite given the urgent need for recovery.
![Hyundai Motor Ulsan plant after morning shift workers left due to strike]()
Hyundai Motor Ulsan plant after morning shift workers left due to strike [Source: Yonhap News file photo]
Analysts Link Labor Conflicts to Physical AI Adoption Trends
Some industry observers suggested recurring labor disputes may accelerate corporate adoption of physical AI and robotics. Kim Gwi-yeon, analyst at Daishin Securities, noted, "When union issues came to the forefront with the Yellow Envelope Law passage in August last year, robot-related stocks surged." Kim analyzed, "Union issue prominence paradoxically has high potential to continuously stimulate robot momentum within the stock market." Factors including the Yellow Envelope Law passage last year, employment concerns from physical AI advancement, performance-linked bonus systems, domestic production strategy changes, and retirement age extension demands are projected to accelerate this phenomenon.
FAQ
What wage increase did Hyundai Motor offer to the union?
Hyundai Motor management proposed a monthly base salary increase of 89,000 won, performance bonuses of 350% plus 10 million won, and 15 company shares to employees.
How much revenue does Hyundai Motor lose per hour of strike?
Industry estimates place Hyundai Motor's revenue loss at approximately 18.7 billion won per hour when the union conducts strike action at the Ulsan plant.
What are Hyundai Motor's Q2 earnings projections?
Analysts surveyed by Yonhap Infomax project Hyundai Motor's consolidated Q2 revenue at 48.8 trillion won (up 1.06% from previous period) and operating profit at 3.1 trillion won (down 14.08%).
