Hyundai Motor labor and management reach tentative wage agreement

Hyundai Motor's labor and management have tentatively agreed on this year's wage negotiations, a deal that includes a 100,000 won increase to base pay and 400% in performance bonuses. The agreement, reached after a marathon session on August 25, also includes 15 shares of company stock, 500,000 won in welfare points, and a 200,000 won summer vacation bonus effective next year.

The tentative deal comes after 111 days of talks since the initial meeting on May 6. The negotiations were contentious, with the union staging an 8-hour strike on August 21, its first in a decade, over unresolved issues like extending the retirement age and reinstating dismissed workers.

Under the agreement, Hyundai will also hire 500 production workers, with 200 in the latter half of next year and 300 in 2028. Discussions on increasing bonus payments will be revisited in next year's negotiations. The retirement age extension will be implemented if legal revisions allow, without expanding the wage peak system.

Both sides agreed to drop all 10 lawsuits for damages and provisional attachments, totaling approximately 21.17 billion won, filed by the company against the union. They also committed to collaborating on future industrial transitions, acknowledging the necessity of adopting new technologies like physical AI and robotics.

The tentative agreement will be put to a vote among all union members on August 31. If it receives majority approval, the wage negotiations for the year will be concluded.

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We have decided to do our best in our core roles, including production in the second half of this year and new car launches, to quickly resolve the impact of the strike and resolve external uncertainties, creating an opportunity for a greater leap forward.