Hyundai Motor’s labor union has abruptly suspended a partial strike scheduled for Aug. 18 and agreed to resume main wage negotiations with management. The decision comes as Choi Young-il, Hyundai Motor’s CEO, personally visited the union to request a return to negotiations, shifting the protracted standoff back into a bargaining phase after the union had escalated strike hours to six hours per shift.

According to the Korean Metal Workers’ Union Hyundai Branch on Aug. 14, labor and management agreed to resume this year’s main wage negotiation at 2 p.m. on Aug. 18. The resumption was decided after CEO Choi Young-il visited the Hyundai branch office that afternoon to personally request a return to talks.

The union had originally planned to conduct six-hour partial strikes per shift on Aug. 18 as well. However, after accepting management’s request to resume negotiations, the union decided to suspend the strike schedule for the day of the main negotiation and work normally. “In accordance with Central Dispute Countermeasures Committee Directive No. 5, the strike schedule on the day of the main negotiation is suspended and normal work will proceed,” the union stated.

This averts production disruptions that had been expected to continue immediately after the Liberation Day holiday. The union resumed strikes on Aug. 12 after returning from summer vacation. On Aug. 12 and 13, it conducted four-hour partial strikes per shift, and on Aug. 14 expanded the strike to six hours per shift.

Earlier in July, the union began with two-hour partial strikes per shift from July 13–15, then halted production lines for four hours per shift on July 20–22 and July 29–31. As strike hours escalated from two to four to six hours, labor-management conflict reached a peak. In fact, last month’s strikes resulted in production losses exceeding 42,000 vehicles for Hyundai Motor.

Core Issues Between Labor and Management

Labor and management remain unable to narrow differences over base wage increases, performance bonuses, and retirement age extension. The union has demanded a base wage increase of 149,600 won (approximately $105.86), a performance bonus equivalent to 30% of the previous year’s operating profit, higher bonuses, and retirement age extension. In particular, the two sides remain far apart on separate demands including retirement age extension, wage peak system reform, and reinstatement of dismissed workers.

Management’s initial wage proposal on July 2 included a base wage increase of 79,000 won (approximately $55.90), a performance bonus of 350% plus 9 million won (approximately $6,368.62), and 10 shares of treasury stock. A second proposal on July 7 raised the base wage increase to 84,000 won (approximately $59.44), with a performance bonus of 350% plus 9.5 million won (approximately $6,722.43) and 12 treasury shares. At the 15th negotiation session on July 8, management raised the base wage increase to 89,000 won (approximately $62.98), offering a performance bonus of 350% plus 10 million won (approximately $7,076.24) and 15 treasury shares. However, the union rejected the offers as falling short of expectations, and negotiations were suspended.

This year’s wage negotiations between Hyundai Motor labor and management have gone through 15 main sessions since the initial meeting on May 6 without reaching an agreement.

Aug. 18 Talks Expected to Be a Watershed

With the CEO personally requesting a return to negotiations and the union suspending its planned strike, the Aug. 18 session is expected to be a watershed moment for this year’s wage negotiations. The union plans to hold the sixth meeting of its Central Dispute Countermeasures Committee after the main negotiation concludes on Aug. 18 to discuss future responses. Working-level consultations will take place from Aug. 15–17.

Whether management presents an additional proposal acceptable to the union at the upcoming session will likely determine whether strikes resume. If the two sides again fail to find common ground, the union may once again play the strike card.

Previously, on July 10, CEO Choi issued a statement saying, “On July 8, the company presented what is effectively its best offer,” adding, “It is regrettable that strikes are being conducted over demands such as reinstatement of dismissed workers and retirement age extension.”