In Hyundai Motor's wage and collective bargaining agreement (collective bargaining) this year, the introduction of a 4.5-day workweek and the extension of the retirement age have emerged as the main issues, and it is reported that opinions within the labor union are divided by generation. Young production workers believe that they should focus their efforts on demands that have a more direct impact on Hyundai workers rather than on broader societal issues. In contrast, the older generation, which makes up the majority of the union, believes that Hyundai should lead the improvement of working conditions, similar to how it did in the early 2000s when the 5-day workweek was introduced.
Hyundai Motor and the labor union had their initial meeting on the 18th of last month and began this year's collective bargaining. The union's demands for this year include ▲an increase in the basic salary of 141,300 won ▲payment of 30% of last year's net profit as bonuses ▲payment of 900% in incentives ▲a 4.5-day workweek ▲extension of the retirement age ▲a graduated severance pay system ▲payment of 20 million won in regular wages for severance. So far, a total of seven rounds of negotiations have been conducted, during which only the differences in positions between labor and management have been confirmed.
The main issues in this negotiation are the introduction of a 4.5-day workweek without a wage cut and the extension of the retirement age. The Hyundai labor union demands to maintain the 5-day workweek while working only 4 hours on Fridays, reducing the total working hours per week from 40 hours to 36 hours. They argue that the retirement age, currently at 60, should be increased to 64. Although there is a skilled re-employment system that allows workers aged 61 and above to work for an additional two years under a contract, they say that it is not stable and is arbitrary, thus the retirement age should be extended.
Regarding these issues, some younger members within the Hyundai labor union are reported to have different opinions from the overall stance of the union. While they do not oppose the 4.5-day workweek and the extension of the retirement age, they believe that energy should be focused on issues that have a more direct impact on Hyundai workers rather than broader societal challenges.
An individual who identified as a young production worker at Hyundai in an online community for office workers, Blind, stated, "The extension of the retirement age and the 4.5-day workweek are government-driven initiatives, so we should just wait for them to happen. I don't understand why we need to take the lead on this." The 4.5-day workweek and the 65-year retirement age were promises made by President Lee Jae-myung.
The older generation of the Hyundai labor union believes that they should proactively adopt the promises of the new government to lead the improvement of working conditions. The Hyundai labor-management collective bargaining agreement has historically had a significant impact on the domestic industry. The Hyundai labor union carried out a long-term strike in 2003 to introduce the 5-day workweek and ultimately reached an agreement. Following Hyundai, 40 auto parts manufacturers under the metalworkers' union and over 3,400 parts suppliers also gradually introduced the 5-day workweek.
The dissatisfaction of some younger production workers surrounding this collective bargaining agreement is indicative of the diminished influence of the Hyundai labor union. According to the '2025 Sustainability Report' published by Hyundai, as of the end of last year, the number of union members was recorded at 39,662, falling below 40,000 for the first time. The proportion of union members among all employees has also decreased from 70.7% five years ago to 52.3% now.
An industry official noted, "The young production workers at Hyundai come from diverse backgrounds and have varied political inclinations," adding, "It will not be easy for all generations of union members to unite under the union banner as in the past."