The deal, reached after a two-day on Tuesday, 17th round of bargaining at the company's Ulsan plant, also lifts base monthly wages by 100,000 won and awards each worker 15 company shares, 500,000 won in welfare points and higher summer holiday allowances.
It goes to a union vote on Aug. 31.
Hyundai will hire 500 production workers, adding 200 in the second half of next year and 300 in 2028. The company agreed to withdraw all 10 damage claims and asset seizures it had filed against union members over past labor actions.
Both sides deferred a contested demand to raise regular bonuses to next year's collective bargaining.
They also agreed that any extension of the retirement age would take effect only if the law changes, without widening the wage-peak system that trims pay for older employees.
The accord followed a bruising campaign of walkouts.
The union struck repeatedly from July 13, beginning with daily two-hour stoppages, and staged an eight-hour full walkout on Aug. 21, its first company-wide strike in a decade. Cumulative strike time reached 60 hours.
Because morning and afternoon shifts each walked out, production lines sat idle for 120 hours, disrupting output of 55,200 vehicles and causing accumulated revenue losses the industry estimates at more than 2.3 trillion won, based on average selling prices per car.
"We have agreed to devote our full efforts to production and new vehicle launches in the second half, to swiftly contain the fallout from the strikes and resolve internal and external uncertainties to create an opportunity for a greater leap forward," the company and union said in a joint statement, 111 days after talks began on May 6.
AJP Takeaways
Hyundai Motor and its union reached a tentative wage deal on Aug. 25 that includes performance bonuses of more than 400 percent of monthly pay plus 12.7 million won in cash, a 100,000-won base wage increase and 500 new production hires; union members vote on the agreement on Aug. 31.
The 2026 negotiations triggered 60 hours of cumulative strikes, including Hyundai Motor's first company-wide walkout in a decade on Aug. 21, idling production lines for 120 hours and disrupting output of 55,200 vehicles with estimated revenue losses above 2.3 trillion won.
Hyundai Motor agreed to drop all 10 damage claims against union members and deferred a disputed regular-bonus increase to 2027 bargaining, while both sides pledged joint responses to the shift toward physical AI and robotics in manufacturing.
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