Hyundai Motor union demands EV discount for retirees

Hyundai Motor union demands EV discount for retirees

최초입력 2025.06.13 11:15:01

Hyundai Motor Group CI

South Korean automaker Hyundai Motor Co.’s labor union is demanding electric vehicle (EV) discounts for retirees for the 2025 collective bargaining agreement, in addition to extended retirement age and the adoption of a 4.5-day workweek.
According to industry sources on Wednesday, the Hyundai Motor chapter of the Korean Metal Workers’ Union included in the 2025 proposal a demand to extend EV purchase discounts - currently available to active employees - to retirees as well.
The beneficiaries would be former employees with more than 25 years of service, who hold what is known as an “honorary employee ID.” The union is seeking a combined discount of up to 25 percent, including local government subsidies, sources said.
Under current agreements, active employees receive up to a 30 percent discount on new vehicle purchases based on their years of service. For EVs, the company offers a discount of up to 20 percent, which can go up to 30 percent when combined with local government subsidies.
However, retirees only receive discounts on internal combustion engine vehicles and are excluded from EV discounts.
The union’s demand comes as the company’s smaller sibling Kia Corp. began offering retirees an EV discount of up to 25 percent this year. Industry observers view the demand as excessive, however, as they point out the context of Kia’s policy shift.
Kia offered a lifetime 30 percent vehicle discount every two years to both active and retired employees until 2022. But due to concerns over increased accidents among elderly drivers, Kia proposed to extend the interval to three years, cap the lifetime benefit at age 75, and reduce the discount to 25 percent.
The Kia union agreed to the proposal in return for including EV discounts for retirees starting in 2025 - a trade-off deal.
In contrast, Hyundai’s union retained its existing benefits at the time and is now seeking additional perks.
“Kia’s union secured retiree EV discounts by compromising, but the Hyundai Motor union is demanding extra benefits without making concessions,” an industry insider said.
Meanwhile, the Hyundai union is also set to demand 20 million won ($14,708) per member as compensation for the exclusion of bonuses from standard wages.
Korea’s Supreme Court ruled in December 2024 that regular bonuses should be included in standard wages. However, the ruling only applied retroactively to the two union members who filed the lawsuit at the time.
The union is now asking the company to compensate other members who would have won had they joined the suit, in the form of consolation and incentive payments. If the company accepts this demand, it will pay an estimated 800 billion won to around 40,000 union members.
Hyundai Motor and the union will hold their first bargaining session on June 18th, 2025. With issues such as a 4.5-day workweek without wage cuts, the extension of the retirement age to 64, standard wage compensation, and retiree vehicle discounts on the table, the 2025 negotiations are expected to be particularly contentious.
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