Exclusive: Hyundai Motor Group Unions Launch First-Ever Joint Strike Push Involving 87,000 Workers

38 unions to join forces, with a first meeting set for June 4

Parent-subsidiary labor solidarity spreads after the Yellow Envelope Act took effect

Union risk is rising across manufacturing, industry says

Labor unions at Hyundai Motor Group affiliates are moving to mount a joint struggle for the first time. The effort spans 38 unions across the group, including Hyundai Motor Co. and Kia Corp., as well as units in auto parts, steel and logistics. It is the first time since the Yellow Envelope Act, a revised labor law that took effect in March, that unions at parent companies and subcontractors have formed a common front. Because the law is designed to require parent companies to engage in collective bargaining, the Hyundai Motor Group case could signal broader coordinated action between parent and subcontractor unions across South Korean industry.

According to labor and industry officials on May 29, Kia's union, which is affiliated with the Korean Metal Workers' Union, sent an official letter on May 28 to 38 union branches and chapters at group affiliates. The document was titled "Discussion on a 100,000-worker struggle by group company unions for victory in the 2026 campaign." The list included unions at the group's core affiliates, covering automakers Hyundai Motor and Kia, parts makers Hyundai Mobis Co., Hyundai Transys Inc. and Hyundai Wia Corp., steelmaker Hyundai Steel Co. and logistics firm Hyundai Glovis Co. Unions at smaller affiliates, including Hyundai Kefico Corp., Hyundai BNG Steel Co. and Hyundai Mseat Co., were also included. Total membership stands at 87,452 workers.

The unions said Hyundai Motor Group had delivered record earnings but was intent on cutting output and jobs at group plants. They put forward demands including raising the retirement age to 65, adopting a 4.5-day workweek and ensuring job security during the shift to artificial intelligence. The first meeting is scheduled for June 4 to discuss a detailed plan.

Industry and labor officials view the revised labor law that took effect in March as the key trigger for the coordinated action. The amendment defines a parent company as an employer if it effectively controls and determines the working conditions of employees at subcontractors or affiliates, and requires it to bargain directly. In the past, Hyundai Motor Group had refused to negotiate with affiliate unions on the grounds that it was not their direct employer. That argument no longer applies after the law took effect. In the industry's view, unions are now using that opening to build a joint front between parent companies and subcontractors.

The structure of the auto industry also gives the unions leverage. Vehicle production depends on a tightly connected chain, from raw materials and parts assembly to logistics and final assembly. If Hyundai Steel does not produce steel sheets, or if Hyundai Mobis and other suppliers do not make parts, car production is disrupted immediately. One industry official said unions were using the fact that a stoppage at even one affiliate could shut down the entire production line as a bargaining weapon.

Pressure for joint bargaining is also spreading across industry. Unions under the Korean Metal Workers' Union representing non-regular workers at GM Korea's Bupyeong plant, parts logistics workers and workers in the Bupyeong industrial complex declared a joint campaign against GM Korea on May 28. Subcontractor unions at Hyundai Mobis have also built a common front against the sale of the company's lamp business. At Kakao Corp., unions at five entities including the parent company and Kakao Pay Corp. approved a strike authorization vote, bringing the IT company's first-ever joint walkout closer.

Yang Gil-sung / Kim Woo-seop, Hankyung.com reporters vertigo@hankyung.com