Hyundai could be facing a strike in South Korea, as its workers there have demanded pay increases and a change in the retirement age. The company has not seen a strike in the country for several years, which could cause production and delivery headaches for the vehicles produced there.
The union wants a pay increase of around $115 per month and an increase in the retirement age from 60 to 64. According to the union, South Korea’s retirement pensions are inadequate to support aging retirees, necessitating longer working years.
Chang Moonsu, a Hyundai Motors Securities analyst, said, “Hyundai Motor’s union at home has always voted for strike action every year and this year is no different, however, the union might push a bit harder than previous years as the company has been doing well and the pandemic is long gone, so workers would like to push for bigger compensation this time.”
Though not inevitable, around 90 percent of the union voted to authorize a strike if Hyundai doesn’t comply. That said, negotiations haven’t yielded progress after eight rounds, making it seem less likely that either side would be willing to give in to the other’s demands. The automaker produces several vehicles in the United States, but a disruption in South Korean operations would impact its electric vehicle efforts here and could slow parts and other component deliveries.
[Images: Hyundai]
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