Hyundai Motor and its labor union have reached a tentative agreement that includes a 100,000 won increase in base salary and a performance bonus of 400% plus 12.7 million won. After enduring a full strike for the first time in a decade, both sides managed to find common ground after 111 days of negotiations.
According to the automotive industry on the 25th, Hyundai Motor and the union reached this tentative agreement during the 17th round of negotiations held over two days at the Ulsan plant from the 24th.
The agreement includes a monthly base salary increase of 100,000 won, a performance bonus of 400% plus 12.7 million won, 15 shares of stock, and 500,000 won in welfare points. Additionally, vacation expenses will increase by 200,000 won compared to previous years.
Both parties also agreed to hire 500 new technical workers, with plans to recruit 200 in the second half of next year and 300 in 2028.
Issues regarding the increase in bonuses, a major point of contention this year, will be revisited in next year's collective bargaining. Regarding the extension of retirement age, it was agreed that it would be implemented without expanding the wage peak system if related laws are amended.
They also found common ground on compensation for damages incurred during union activities. The company agreed to lift 10 injunctions it had filed for damages due to alleged illegal activities.
With the tentative agreement in place, the prolonged strike is expected to come to an end. The Hyundai Motor union had gone on strike for the second consecutive year after failing to narrow differences with management over bonus increases and retirement age during this year's wage negotiations.
The strike escalated from partial strikes of two hours each on July 13-15 to an eight-hour full strike on August 21, the first in a decade.
This year, the cumulative strike time has reached 60 hours, with both morning and afternoon shifts participating, resulting in a total production line shutdown of 120 hours.
Industry estimates suggest that the production disruption amounts to approximately 55,200 vehicles. Based on the average selling price of vehicles, the cumulative loss in sales is estimated to exceed 2.3 trillion won. Employees participating in the strike have also seen a cumulative reduction in wages due to the principle of 'no work, no pay.'
Ultimately, the two sides reached a tentative agreement 111 days after their first meeting on May 6. A vote on the agreement will be held for all union members on the 31st, and if approved, this year's wage negotiations will be finalized.
Both parties have also agreed to strengthen cooperation in the transition to future industries. They acknowledged the need to adopt future technologies such as physical artificial intelligence (AI) and robotics to secure corporate competitiveness and agreed to share progress on new businesses and technologies.
A representative from the Hyundai Motor union stated, "Through the patience and determination of our members during the prolonged negotiations, we have achieved a performance distribution in the 40 million won range."
A Hyundai Motor representative expressed, "We apologize for the concerns caused to shareholders, customers, and numerous stakeholders due to the prolonged negotiations and strikes."
* This article has been translated by AI.
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