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Photo = Hyundai Motor |
[Alpha Biz= Kim Jisun] SEOUL, South Korea – June 12, 2025 — The labor union of Hyundai Motor Company has put forward a demand for KRW 20 million (approx. USD 14,500) per member in compensation following a Supreme Court ruling on base wage calculations, as part of this year’s collective bargaining negotiations.
According to industry officials, the proposal was approved during an extraordinary union delegate meeting held on May 28–29, where 149 out of 279 delegates (53.4%) voted in favor. The resolution calls for the company to pay KRW 20 million per worker for the years 2022 through 2024, citing a Supreme Court decision on the inclusion of regular bonuses in ordinary wages.
In December 2023, the Supreme Court ruled that regular bonuses must be included in base wage calculations, which serve as the basis for overtime, severance, and other benefits. However, the court limited retroactive application to only the plaintiffs—two Hyundai union members—citing legal stability.
The union argues that other employees in similar roles, although not part of the lawsuit, are equally entitled to compensation, at least in the form of a goodwill payment. Hyundai's union currently represents about 41,000 workers, meaning the total payout could reach KRW 820 billion (approx. USD 595 million) if the demand is met.
Given the court’s restriction on retroactive enforcement, legal experts suggest Hyundai Motor may reject the demand, potentially viewing it as outside the boundaries of the court’s decision.
Formal negotiations between the union and management are set to begin on June 18. In addition to the compensation demand, this year’s key union proposals include:
A KRW 141,300 (approx. USD 100) monthly base salary increase
30% of last year’s net profit paid as performance-based bonuses
Extension of the retirement age to 64
Introduction of a graduated severance pay system
Analysts expect this year’s negotiations to be especially contentious, as workers push for broader compensation in light of strong corporate earnings, while the company navigates cost management and legal boundaries.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
