Hyundai Motor's union reaches tentative wage deal, averting more strikes

The Korean union representing Hyundai Motor's workers has reached a tentative wage agreement with management, ending a contentious first full strike in a decade that began on Friday. The union had been advocating for higher bonuses, a later retirement age, and safeguards for employees facing automation.

Under the tentative deal, Hyundai workers will receive a monthly base salary increase of 100,000 won, approximately $72.31, along with a performance bonus equal to 400% of their base pay. The agreement also includes additional cash and bonus payouts.

A critical aspect of the deal is the extension of the retirement age from the current 60 years. This change will be implemented after amending relevant laws, but it will not result in salary reductions for the first few years following the increase. The union had expressed concerns about the potential impact on their livelihoods.

As part of the agreement, Hyundai Motor is committed to hiring 500 new technical workers starting next year and continuing until 2028. However, Reuters could not obtain a response from Hyundai Motor regarding the terms of the agreement outside regular business hours.

The union had previously pushed for Hyundai to set aside 30% of its net income for employee bonuses and to guarantee job security. This came amid growing concerns over the increasing use of robotics and artificial intelligence in the workplace.