Hyundai workers threaten strike over salary, retirement age: report – Hyundai Motor (OTC:HYMTF)

Hyundai Motor Co., Ltd.‘S HYMTF Union members in South Korea have reportedly voted in favor of possible strike action after negotiations with the company over wage increases and raising the retirement age stalled.

The union, one of the largest in the country with over 43,000 members, said nearly 90 percent of its members had voted to strike unless Hyundai Motor agreed to meet the union’s demands, Reuters reported.

The union is proposing an increase in the minimum monthly base salary of 159,800 won (US$115.14), as well as performance-related pay tied to 30 percent of Hyundai’s net profit in 2023.

To read: Hyundai moves forward to consolidate its positioning in electric vehicles despite slowdown

The car manufacturer’s union is also calling for an increase in the retirement age from 60 to 64, pointing to the increasing life expectancy in South Korea and the need for adequate retirement income.

According to the report, there is a risk that the strike will disrupt domestic production of several popular vehicles that Hyundai exports to make up for sluggish domestic sales.

If a strike were to occur as part of the collective bargaining negotiations at the South Korean carmaker, it would be the first of its kind in six years.

A union representative at Hyundai Motor told Reuters: “We are open to negotiations with management if they are willing to change their stance.”

They also mentioned that the union intends to start talks at working level with the company management.

By mid-June, the union and company management had conducted a total of eight rounds of collective bargaining.

According to the report, analysts warn that such a move would likely have a negative impact on Hyundai’s near-term sales, especially in the United States, the company’s largest market for revenue-generating vehicles.

Related: Can’t catch up with Tesla yet, but South Korean companies Hyundai and Kia are catching up and have a record market share of electric vehicles in the US

The report quoted Chang Moonsu, an analyst at Hyundai Motor Securities, as saying: “Hyundai Motor’s union has voted for strike action every year, and this year is no different. However, the union may apply a little more pressure than in previous years as the company is doing well and the pandemic is long over. Therefore, workers would like to push for higher compensation this time.”

Price promotion: HYMTF shares were up 3.63% to $59.12 at last check on Monday.

Disclaimer: This content was created in part using AI tools and reviewed and published by Benzinga editors.

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