14 module and parts subsidiary chapters mount joint response

Unions demand job security, joint bargaining, fixed-pay raises

Conflict spreads as restructuring follows lamp unit sale

'Mobis must take responsibility for subsidiary workers' conditions'

Workers attend a rally opposing Hyundai Mobis's restructuring at the Unitus Gimcheon factory in North Gyeongsang Province on May 18. [Provided by the Korean Metal Workers' Union]
Workers attend a rally opposing Hyundai Mobis's restructuring at the Unitus Gimcheon factory in North Gyeongsang Province on May 18. [Provided by the Korean Metal Workers' Union]

Unions representing workers at Hyundai Mobis subsidiaries and affiliates are mounting a coordinated response ahead of this year's wage and collective bargaining negotiations. As Hyundai Mobis accelerates a portfolio restructuring that includes the sale of its lamp business unit, labor-management conflict over job security and working conditions at its subsidiaries is spreading.

According to labor sources Monday, the joint dispute committee of 14 Hyundai Mobis module and parts subsidiary chapters plans to launch eight-hour strikes on both day and night shifts Thursday before joining a joint rally. The committee issued "Directive No. 1" on Sunday, notifying senior union officials of the strike and rally participation plan.

The rally is intended as a resolution event ahead of the 2026 wage and collective bargaining negotiations. The unions have put forward three core demands: securing job stability, guaranteeing joint bargaining covering Unitus and Motras, and raising fixed pay.

The unions contend that Hyundai Mobis's ongoing restructuring could destabilize employment and working conditions at its subsidiaries. They are particularly insistent that Hyundai Mobis engage directly in bargaining over issues affecting subsidiaries such as Unitus and Motras, arguing that the parent company — not just the subsidiaries themselves — must take responsibility for resolving job security concerns.

On the ongoing wage negotiations, the subsidiary unions also view demands such as fixed-pay increases and closing welfare gaps as matters Hyundai Mobis must address directly. Their position is that because subsidiary workers have contributed to Hyundai Mobis's earnings improvement and restructuring, wage and working-condition issues cannot be left solely to individual subsidiary-level bargaining.

Senior officials from Unitus and Motras will lead the joint action, with participation also expected from officials of the Hyundai Mobis office and research workers' chapter, Hyundai IHL and other Hyundai Mobis affiliate and subsidiary union branches. Because the action centers on senior officials rather than rank-and-file members, it is not expected to cause immediate production disruptions. Through the rally, participants plan to publicly announce their joint bargaining strategy and job-security demands for this year's negotiations.

Union opposition has grown in the wake of the recent conflict over the lamp business unit sale. Hyundai Mobis selected French auto parts maker OP Mobility as the preferred bidder for the unit and has been proceeding with the sale. The lamp business unit develops and produces front and rear lighting systems for vehicles, including LED headlamps, rear lamps and intelligent lighting systems.

The Hyundai IHL chapter staged a full strike in protest of the sale, but the dispute moved toward resolution after Hyundai Mobis, Hyundai IHL and the union reached an agreement on job security. In a membership vote on May 20, 358 of 399 eligible members cast ballots, with 187 in favor, 169 against and 2 invalid — passing the agreement with a 52.2 percent approval rate among those who voted.

The agreement included terms guaranteeing 100 percent employment continuity for all current staff after the sale, maintaining the scale of domestic research and development operations at the Mabook and Uiwang campuses along with research personnel, and preserving the union and existing collective agreement. It also required regular reporting and consultation on employment stability, production volume, investment and business operations following the sale.

Notably, Hyundai Mobis participated directly in the negotiations, and the agreement bears the signature of Hyundai Mobis CEO Lee Gyu-seok — a development observers say sets a precedent for future restructuring processes. While labor-management agreements are in principle the domain of the subsidiary, Hyundai IHL, the Korean Metal Workers' Union views the outcome as equivalent to winning direct bargaining with the parent company.

The question of severance compensation remains unresolved. Hyundai IHL presented a compensation proposal to the union on Sunday in connection with the lamp unit sale. The proposal included a contribution bonus, a "new start" incentive payment and a top-up to cover the difference between the contribution bonus and what other subsidiaries received. The new start incentive was set at 60 million won (about $43,400) — 10 million won more than the 50 million won Unitus had previously offered — and the proposal also included an additional 50 million won payment to cover the compensation gap.

Hyundai Mobis is pursuing a strategic shift away from its traditional parts manufacturing base, concentrating instead on future mobility areas including electrification, software-defined vehicles, automotive electronics, semiconductors and AI. With talk of a possible sale of the bumper business unit following the lamp unit divestiture, concern among subsidiary unions is growing.

Labor observers say the strike and rally could mark the start of a more organized, unified response by Hyundai Mobis affiliate unions to the company's restructuring. Given that employment continuity and parent-company accountability emerged as central issues during the lamp unit sale, similar labor risks are likely to recur as other business units are restructured, they said.


kwater@heraldcorp.com