[Edaily Kim Hyung-wook Reporter Lee Yoon-hwa] The Hyundai Motor Company labor union has decided to escalate its strike after failing to bridge the gap on issues such as the “N% performance bonus.” Just as the company is rapidly closing the gap with the Volkswagen Group, the world’s second-largest automaker, it has encountered an unexpected obstacle: prolonged production disruptions caused by the union strike.

The Hyundai Motor Branch of the Korean Metal Workers’ Union held a Central Dispute Response Committee meeting on the 11th and decided to hold partial strikes of 4 hours each on the 12th and 13th, and 6 hours each on the 14th and 18th. Combining the first and second shifts, the daily production line downtime will increase from the previous maximum of 8 hours to 12 hours.

Last month, nine days of partial strikes at Hyundai Motor resulted in a total of 60 hours of production disruptions and a loss of 42,510 vehicles. As a result, the company’s global sales last month fell by 5.1% compared to the previous year. With an additional 40 hours of partial strikes now confirmed, Hyundai Motor’s cumulative production loss is estimated to rise to around 70,000 vehicles. Hyundai Motor and Kia sold 3.6 million vehicles in the global market during the first half of this year, narrowing the gap with second-place Volkswagen Group (4.13 million units) to 530,000 units; however, if the summer labor disputes drag on, it will be difficult to avoid poor performance in the second half of the year.

The fear of summer labor disputes sweeping the industry is not limited to Hyundai Motor. The HD Hyundai Heavy Industries union plans to file a request for labor dispute mediation with the Central Labor Relations Commission (CLRC) against management on the 14th. The POSCO union is set to undergo final mediation by the CLRC on the 18th regarding wage and collective bargaining negotiations.

Business circles point out that labor-management conflicts have intensified as the scope of labor disputes has been broadly expanded through the “Yellow Envelope Act” (amended Trade Union Act). Since the Act’s implementation, conflicts have escalated beyond disputes over wage increases, with issues such as N% performance bonuses and the restructuring of labor-management relations between prime contractors and subcontractors emerging simultaneously. The Hyundai Motor union is also demanding a performance bonus equivalent to 30% of the previous year’s net profit.

Many experts believe that supplementary legislation for the “Yellow Envelope Act” is absolutely necessary. Choi Jun-seon, Professor Emeritus at the Sungkyunkwan University Law School, stated, “Since the adverse effects of the amended Labor Union Act are so significant, realistically, the ruling Democratic Party of Korea must take the lead,” adding, “While there are calls to amend the enforcement decree, it is impossible to stipulate matters not delegated by the law through administrative legislation.”

At a Cabinet meeting held that day, President Lee Jae-myung instructed Minister of Employment and Labor Kim Young-hoon, saying, “Establishing the details necessary for the implementation of the law is the authority of the executive branch as stipulated by the Constitution,” and ordered the drafting of an enforcement decree for the “Yellow Envelope Act.”