- Hyundai Motor’s tentative wage agreement with its labor union ends months of on-and-off walkouts that have disrupted production at the Korean automaker.
- The deal was reached on Tuesday, following the first full-day labor strike in a decade on Friday as unionized workers pressed their demands, the Korean carmaker said.
- Around 40,000 employees at the country's largest carmaker walked off the job on Friday, according to union figures, in the first such action for a decade.
- The union said on Monday that it had returned to talks with the company and had postponed shorter strikes planned for early this week.
- Union members will vote on the proposals on August 31.
- The union indicated that the firm had agreed to partly meet its demands.
- "We agreed to increase the basic monthly salary by 100,000 won ($72) and pay a bonus equivalent to four months' salary," the union told *AFP* in a statement.
- The company would also meet another demand to raise the retirement age once the government passes legislation on a nationwide hike from 60 years to 65.
- Hyundai will not apply the wage peak system, which gradually reduces the salaries of older workers in their final years, after the retirement age is extended, the union said.
- The company's workers have staged a total of 60 hours of strikes this year, causing estimated losses of around $1.6 billion, according to calculations by local news agency *Newsis*.
- Hyundai posted record second-quarter revenue of 49.2 trillion won, although operating profit fell 20.8 percent year-on-year amid weaker sales.
Hyundai Motor has reached a tentative wage agreement with its labor union, concluding months of disruptive walkouts, including the first full-day strike in a decade. The agreement, announced on Tuesday, follows a significant strike on Friday where around 40,000 employees participated, according to union figures.12311
The union's demands included a monthly salary increase of 100,000 won ($72) and a bonus equivalent to four months' salary. The company also agreed to raise the retirement age from 60 to 65 once the government enacts relevant legislation. Additionally, Hyundai will not implement the wage peak system that reduces salaries for older workers in their final years.89
A Hyundai spokesman expressed appreciation for the commitment of employees and the negotiating teams, stating, “We acknowledge the commitment of our employees and appreciate the efforts of our negotiating teams in reaching this tentative agreement.” The union plans to hold a vote on the proposals on August 31.5
This year, Hyundai workers have conducted a total of 60 hours of strikes, leading to estimated losses of around $1.6 billion, as reported by local news agency *Newsis*. Despite these challenges, Hyundai posted record second-quarter revenue of 49.2 trillion won, although operating profit fell by 20.8 percent year-on-year amid weaker sales.10
“The tentative deal includes a 100,000 won ($72) monthly salary increase and a bonus equivalent to four months' pay, with union members voting on August 31. Strikes this year totaled 60 hours, causing estimated losses of around $1.6 billion, while Hyundai posted record second-quarter revenue of 49.2 trillion won.”
WSJ
