Hyundai union demands 30% of net profit as performance bonus

Hyundai's labour union demands a bonus equal to 30% of last year's net profit, potentially costing over 3 trillion won. They also seek a salary hike, an increased bonus rate, job security measures, and an extension of the retirement age.

The labour union of Hyundai Motor Group is seeking a performance bonus equivalent to 30 per cent of the company's net profit from last year, marking a significant escalation in labour negotiations for South Korea's leading automotive conglomerate. This demand follows a fiscal year in which the automaker posted a substantial 10.36 trillion won (USD 7.06 billion) in net profit for 2025. If the company meets these terms, the payout would amount to more than 3 trillion won, which is approximately USD 2 billion, according to a report by The Korea Herald.

Beyond the profit-sharing percentage, the labour union's proposal includes a monthly base salary increase of 149,600 won (USD 101.90). The union also seeks an increase in standard bonuses, moving the rate from 750 per cent to 800 per cent of base pay.

Broader Union Demands

These financial demands are paired with structural requests regarding the future of the workforce and the impact of new technologies on manufacturing roles. The labour union said the bonuses based on last year's net profit should be equally distributed to employees at Hyundai Motor's partner firms. In addition to the financial package, the union is pushing for job security in relation to artificial intelligence, an extension of the retirement age of up to 65, and a commitment to additional hiring.

A Trend Among South Korean Conglomerates

The report stated that this hefty demand from the auto labour union came amid other major unions asking for big bonuses at Korea's leading conglomerates. "Samsung Electronics' labour union has demanded performance bonuses funded by 15 percent of operating profit with no upper limit on this year's earnings. As market analysts expect Samsung Electronics to log about 298 trillion won on average, the company may end up spending nearly 45 trillion won on employee bonuses," the report noted.

A similar pattern is visible in the semiconductor industry. SK hynix, which reached a labour-management agreement in September last year, decided to allocate 10 per cent of its operating profit to bonuses. With the chip giant's operating profit forecast at around 200 trillion won (USD 136.23 billion) this year, the bonus pool could reach 20 trillion won (USD 13.62 billion). (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)