Newsletters
Hyundai Motor and the union representing the South Korean automaker's workers said Tuesday they had reached a tentative agreement on wages and bonuses following a rare full-day walkout.
Around 40,000 employees of a roughly 73,000-strong domestic workforce 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 this week.
Hyundai said on Tuesday that the two sides had struck a "tentative agreement," while 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 stated.
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.
Union members will vote on the proposals on Aug. 31. "We acknowledge the commitment of our employees and appreciate the efforts of our negotiating teams in reaching this tentative agreement," a Hyundai spokesperson stated.
He also said both parties recognized that advanced technologies such as "physical AI and robotics are an essential part" of the future of mobility.
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 ($35.5 billion), although operating profit fell 20.8% year-on-year amid weaker sales.
Set as preferred source
Set as preferred source
1 min read
1 min read
