Hyundai Motor union reaches tentative wage deal, averting more strikes

Hyundai Motor's South Korean union has reached a tentative wage agreement with management, successfully averting further production losses. The union had previously staged its first full strike in a decade, following a series of partial stoppages, amid demands for higher bonuses, an increased retirement age, and job protections against artificial intelligence and automation.

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The tentative agreement includes a base salary increase of 100,000 Korean won (S$92) a month plus a performance bonus equivalent to 400 per cent of base pay and additional payouts in cash and bonuses.

The tentative agreement outlines a monthly base salary increase of 100,000 Korean won (approximately $92), alongside a performance bonus equivalent to 400% of base pay, with additional cash payouts. The retirement age is set to be extended from 60, contingent on legislative amendments, and will not involve salary reductions for the initial years post-60.

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The retirement age will be extended from the current 60 upon amendment of a relevant law, without reducing salary for the first few years after 60, the union said.

Furthermore, the company plans to hire 500 new technical workers between next year and 2028. Addressing union concerns about job security in the face of increasing robotics and AI adoption, both sides agreed to discuss employment matters when introducing new business ventures. This comes as Hyundai, which owns Boston Dynamics, intends to deploy humanoid robots at its U.S. plant in Georgia from 2028, with plans to expand their use across its global production sites.

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From next year until 2028, 500 new technical workers will be hired.