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Hyundai Motor is bracing for labor unrest as its union declared the breakdown of this year’s wage and collective bargaining talks and moved to secure the legal right to strike. The union is demanding a retirement age extension to 64, a 4.5-day workweek, and bonuses worth 30 percent of last year’s net profit — about 4 trillion won.

With U.S. tariffs clouding Hyundai’s future earnings, industry officials warn that a strike could further destabilize the auto sector.

According to industry sources on August 19, the union will decide its course of action at a delegates’ meeting on the 20th and hold a strike authorization vote among all members on the 25th. Despite securing the legal right to strike in 2023 and 2024, the union refrained from walkouts, fueling speculation it may again stop short of industrial action given the global auto industry’s fragile state.

“While the union is signaling a tough stance, it is fully aware of Hyundai’s situation,” said one industry official. “Behind-the-scenes talks are ongoing, and a settlement could be reached before the 25th.”

Union demands include raising the base salary by 141,300 won, including allowances in ordinary wages, extending the retirement age from 60 to 64 to match the national pension age, and introducing a shortened workweek. The union has also rejected management’s explanation that tariffs justify holding back on compensation.

“The union is keeping all options open in negotiations, but management has offered no concrete measures,” the Hyundai Motor branch said. “On August 20, delegates will debate industrial action, and on the 25th, members will vote via mobile ballot. Last year, Hyundai posted more than 14 trillion won in operating profit, up 7.3 percent, yet the company hides behind tariffs. The struggle will continue.”