Hyundai Motor and HD Hyundai Heavy Industries unions kick off talks seeking 149,600-won base pay hikes and profit-linked bonuses
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The Hyundai workplaces in Ulsan have entered this year’s season for wage and collective bargaining agreement negotiations.
The Hyundai Motor labor union held the ‘2026 Collective Bargaining Kick-off Rally’ on the lawn of the Ulsan plant’s main building on May 13, officially entering a full-fledged campaign mode.
The union’s demands include a 149,600 won increase in the basic monthly wage (excluding the seniority-based pay increase), and for 30% of the previous year’s net profit to be paid as performance-based bonuses. Also included are proposals for an increase in bonuses to 800%, an extension of the retirement age, the hiring of new personnel, and the introduction of a full salary system. Labor and management held their first introductory meeting for wage negotiations on May 6.
Last year, labor and management agreed to a 100,000 won increase in the basic monthly wage, performance bonuses of 450% + 15.8 million won, and 30 company shares. However, in the process, the union conducted partial strikes, breaking a six-year record of dispute-free settlements. It is anticipated that this year’s negotiation table will also see friction over the introduction of a full salary system, which would maintain wages even if working hours are reduced, and the maintenance of domestic production volumes for employment security.
The HD Hyundai Heavy Industries labor union has finalized its demands for this year’s wage and collective bargaining, centered on a 149,600 won increase in the monthly basic wage (excluding the seniority-based pay increase). The demands also include a 100% increase in bonuses, sharing 30% of operating profit as performance incentives, and a contribution of 2 billion won in operating expenses to maintain recreational facilities. They are also demanding an expansion of the scope of application for ordinary wages and the hiring of new employees.
Notably, the union plans to demand, at the level of the Federation of Shipbuilding Industry Unions, that the company establish employment security measures through an agreement with the union when introducing AI technology into its processes. The union passed a resolution on these demands at a provisional delegates’ conference held at the Ulsan headquarters on May 12.
Labor and management plan to hold an introductory meeting early next month to begin negotiations.
This year, not only the prime contractors’ unions but also the subcontractor unions plan to engage in collective bargaining, placing a significant burden on the prime contractor companies. In fact, the in-house subcontractor’s union chapter at HD Hyundai Heavy Industries delivered a set of negotiation demands to the company last month, including a 149,600 won wage increase, the recognition of an 8-hour workday as one ‘gongsu’ (daily wage), and the payment of performance bonuses equivalent to those of the prime contractor.
However, the atmosphere suggests that it will not be easy for a specific negotiation timetable to emerge immediately, unlike with the prime contractor’s union. The company’s position is that the subcontractor union must first meet the conditions for negotiation by submitting data such as the exact number of union members for each in-house company.
Jung Suk-yee
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