Hyundai Reaches Preliminary Deal With Union After Worker Strike
Hyundai Motor and its labor union have reached a preliminary agreement, ending a major strike that halted production. The deal includes base wage increases and bonuses for workers.
South Korea's largest automaker, Hyundai Motor, has reached a preliminary agreement with its labor union, concluding a significant strike that disrupted its operations. This marks the first company-wide strike in a decade, involving approximately 40,000 employees.
The agreement stipulates a monthly base wage increase of 100,000 South Korean won (approximately $75 USD). Additionally, employees will receive bonuses equivalent to four months of their salary. The company also agreed to address the union's demand to raise the retirement age, contingent upon the government passing legislation to extend the national statutory retirement age from 60 to 65.
Furthermore, Hyundai Motor committed to not implementing a 'wage peak' system, which would gradually reduce the salaries of older employees in the years leading up to retirement. Union members are scheduled to vote on these proposals on August 31.
The strike is estimated to have cost Hyundai Motor approximately $1.6 billion USD in lost production. Despite achieving record revenue in the second quarter, the company reported a 20.8% year-on-year decrease in operating profit due to declining sales volumes.