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Management and labor representatives of Hyundai Motor sit across from each other during their first official meeting for the 2026 wage negotiations, held on May 6 at the Donghaeng Room in the main building of the Ulsan plant. / Courtesy of Yonhap News

Hyundai Motor’s management and labor have failed to find common ground during their latest round of wage talks, despite the company presenting a revised second proposal. With the union warning that it could launch an industrial struggle unless a more progressive offer is tabled during the upcoming session on July 8, the negotiations have reached a critical crossroads.

According to industry sources on July 7, the two sides held their 14th main round of wage negotiations at the main plant in Ulsan to discuss the company’s supplementary financial package, but were unable to bridge the gap.

During the session, management put forward an upgraded second package that proposed raising the base monthly salary by 84,000 won. This marked a 5,000 won increase from the initial proposal presented on July 2.

The company also sweetened its performance-based bonuses and incentives, offering a payout of 350% of the base salary plus 9.5 million won, along with 12 shares of treasury stock. Compared to the first offer, the lump-sum incentive was bumped up by 500,000 won and the stock allotment was increased by two shares.

"To conclude these negotiations swiftly, it is time for us to start pruning key points of contention one by one," Hyundai Motor CEO Choi Young-il stated. "I hope this additional wage proposal serves as a meaningful step forward in advancing our talks."

The union leadership, however, pushed back immediately, asserting that the revised figures fell far short of meeting the workers' expectations.

"The management's additional proposal is deeply disappointing," said Lee Jong-chul, head of the Hyundai Motor Branch of the National Metal Workers' Union. "If there is no progressive offer regarding wages and core issues in our separate demands during the 15th round of talks, the union will have no choice but to chart its own course."

Nevertheless, the two sides did make some progress on certain separate demands. They reached a consensus on introducing a Defined Contribution (DC) retirement pension plan and modifying the long-service recognition system to allow employees to choose cash or exchange-traded funds (ETFs) instead of traditional gold medals.

The labor and management are scheduled to resume discussions during their 15th round of talks on July 8. As the union continues to demand further concessions, the next session is being widely viewed as the ultimate watershed moment for this year's collective bargaining. Following that meeting, the union intends to convene the second session of its Central Dispute Countermeasures Committee.

"The negotiations have arrived at a critical turning point," an industry insider noted. "The coming hours will determine whether the two sides can find common ground through further bargaining or if the union will officially initiate industrial action."

                                                                                                           Kim Jeong-gyu