The labor union at Hyundai Motor Group has significantly upped the ante in its latest wage negotiations, demanding a performance bonus equivalent to 30% of the company’s 2025 net profit.
This bold move follows a record-breaking fiscal year where the South Korean automotive giant reported a net profit of 10.36 trillion won (approximately $7.06 billion).
A Multibillion-Dollar Proposal
If accepted, the union’s profit-sharing demand would result in a total payout exceeding 3 trillion won (about $2 billion).
Beyond the massive profit-linked bonus, the union has set forth several other high-stakes financial demands:
- Monthly Base Salary Increase: A proposed hike of 149,600 won ($101.90).
- Higher Standard Bonuses: An increase in standard bonuses from 750% to 800% of base pay.
- Inclusive Payouts: A landmark request that performance bonuses be distributed equally to employees at Hyundai’s partner firms and subcontractors.
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Hyundai Union Future-Proofing Against AI and Automation
The union is not solely focused on immediate financial gains; it is also prioritizing long-term workforce stability.
A key pillar of the proposal is job security in the face of artificial intelligence (AI) and robotics.
The union is pushing for a “full monthly salary system” to protect income even if automation reduces factory floor hours.
Additionally, they are calling for an extension of the retirement age to 65 and clear commitments for additional hiring to fill natural attrition.
Setting a Benchmark for “Korea Inc.”
Hyundai’s assertive stance mirrors a broader trend across South Korea’s leading conglomerates.
Unions at Samsung Electronics and SK Hynix have made similar demands, seeking between 10% and 15% of operating profits as bonuses.
However, Hyundai’s union has set a new precedent by being the first to include supplier performance bonuses in collective bargaining under the recent “Yellow Envelope Act”.
As full-scale bargaining begins this month, industry analysts and shareholders are closely watching, noting that such large payouts may clash with high-dividend policies and investor interests.
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About the Author
Sahiba Sharma
Contributing Writer