Interest grew as the Hyundai Motor Union postponed the four-hour partial strike scheduled for August 24, raising speculation that a dramatic settlement might finally be reached. However, the postponement of the partial strike does not signify the completion of an agreement, but rather is a strategic move to resume the suspended wage negotiations.
As of 11:00 AM on August 24, no tentative agreement had been announced, and the 17th round of main negotiations was scheduled to resume at the Ulsan plant at 2:00 PM that day. In this post, I will summarize the situation in chronological order, ranging from the significance of suspending the partial strike to the union's demands, management's proposal, production disruptions, and future settlement conditions.
Suspending the partial strike is not a settlement.
The suspension of the partial strike on August 24 is a measure to resume negotiations.It amounts to leaving room for dialogue between labor and management while the union halted the four-hour strike scheduled for that day to review the company's proposal.
Therefore, reservation, withdrawal, termination, and settlement should not be viewed as having the same meaning. Wage negotiations can only be considered to have entered the actual agreement stage after a tentative agreement is reached and a vote by union members is held.
The suspension of the partial strike is not a signal that the conflict has ended, but rather an intermediate step of continuing strike pressure and negotiations simultaneously.
The progress leading up to the 17th round of negotiations
Hyundai Motor Company and its labor union began their initial meeting for wage negotiations on May 6, 2026. Negotiations stalled after the 15th round on July 8, but the possibility of resuming dialogue increased as the 16th round reopened on August 18, 41 days later.
However, the conflict continued even after negotiations resumed. On August 21, the Hyundai Motor Union staged an 8-hour full-scale strike for the first time in 10 years since 2016, and subsequently, on August 24, postponed a 4-hour partial strike and shifted direction back to the 17th round of main negotiations.
This trend is interpreted to mean that the union maintained pressure through industrial action while not closing the door to receiving additional proposals from the company. As a four-hour partial strike was scheduled for August 25, the progress of the 17th round of negotiations became an important criterion for the next stage.
Wage and non-wage issues are at stake together.
The union's demands are not limited to wages alone. Negotiations have been prolonged because issues directly calculated in monetary terms, such as base salary, performance bonuses, and incentives, are bundled together with matters requiring institutional judgment, such as extending the retirement age and reinstating dismissed union members.
While the scale of base salary and performance bonuses stands out the most in terms of monetary differences, the issues of extending the retirement age and reinstatement are also significant variables in long-term negotiations. In particular, extending the retirement age is linked to the timing of receiving the National Pension, and the reinstatement of dismissed union members is a matter on which the company is drawing a line in negotiations based on court rulings regarding their dismissal.
You need to look at production disruption figures separately.
The impact of the strike spread not only to the Ulsan plant but also to major production lines in Jeonju and Asan. The cumulative strike time until August 21, 2026, was projected to be approximately 60 hours, and due to the participation of morning and afternoon shifts, the downtime based on production lines was calculated to be approximately 120 hours.
The industry estimated the production disruption at approximately 55,200 units and the revenue shortfall at about 2.3 trillion won. However, this 2.3 trillion won figure is based on the number of suspended vehicles and unit sales prices Estimated sales shortfallThis is not the net loss or operating loss that Hyundai Motor has officially announced.
If production halts, vehicle shipments are delayed, and it places a burden on parts supply and employment at partner companies. However, since some of the volume can be recovered through subsequent supplementary production, interpreting the cost of production disruptions and the decrease in final earnings as the same figure leads to a misinterpretation.
| division | Union demands | Company's proposal |
|---|---|---|
| base salary | Monthly increase of 149,600 won | Monthly increase of 89,000 won |
| Performance-based pay | Request for allocation of 30% of operating profit | 350% and 10 million won offered |
| bonus | Requirement of 8001 TP3T level from the existing approximately 7501 TP3T | Pre-agreement stage |
| Welfare and compensation | Demand for increased stock compensation | Offering 15 shares of stock |
| Retirement and reinstatement | Extension of retirement age to a maximum of 65, reinstatement of dismissed union members | Position regarding laws, systems, and dismissal judgments |
Key conditions that will determine a dramatic settlement
The most direct variable is the company's additional proposal. The company proposed a monthly base salary increase of 89,000 won, a performance bonus of 3501 TP3T and 10 million won, and 15 shares of stock, but a gap still remains with the union's demands.
The first hurdle is how much the company will narrow the scope of the increases demanded by the union for a monthly base salary hike of 149,600 won, as well as performance bonuses and incentives. For issues that are difficult to resolve immediately with money, such as extending the retirement age and reinstating dismissed union members, separate wording or a phased discussion approach is required.
The announcement of the tentative agreement is a tangible signal of a dramatic breakthrough.The mere fact that negotiations have resumed does not mean an agreement has been reached; the process of ending the strike and normalizing production will proceed only after an agreement is prepared and ratified in a vote by union members.
Stock prices and earnings must be evaluated based on various indicators.
Labor-management negotiations can be a short-term variable for Hyundai Motor's stock price. While a prolonged strike could reduce production and shipments and increase cost burdens, the stock price reflects not only labor-management issues but also vehicle sales volume, operating profit margin, exchange rates, sales in the U.S. market, tariffs, and production costs.
Although Hyundai Motor's revenue for the second quarter of 2026 was reported to have exceeded 49 trillion won, the impact of the strike cannot be taken lightly simply because the quarterly revenue scale is large. Conversely, the estimate of 2.3 trillion won should not be immediately interpreted as a confirmed loss for the company.
The fact that the Kia labor union has announced a partial strike starting August 26 is also connected to the trends in wage and collective bargaining negotiations within the automotive industry. As Hyundai Motor’s level of agreement and procedures can serve as a reference standard for negotiations at other companies, investors should examine the overall production and sales trends of the industry rather than focusing solely on exclusive news regarding Hyundai Motor.
To summarize, the resumption of the 17th round of negotiations is the starting point for a settlement, not the result. The next turning point in Hyundai Motor's wage negotiations is whether a tentative agreement is reached following the suspension of the partial strike, and whether the subsequent union member vote and production normalization proceed.