Labour union of Hyundai Motor demands 30% companys net profit as performance bonuses

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.

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).