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

The Korean union representing Hyundai Motor workers has reached a tentative wage agreement with management, ending a series of strikes that caused production losses, according to wire reports. The union's primary demands included higher bonuses, an increase in the retirement age, and protections against job losses due to artificial intelligence and automation.

Under the tentative deal, Hyundai Motor will provide a monthly base salary increase of 100,000 won ($72.31) per employee, plus a performance bonus amounting to 400 percent of the base pay and additional cash and bonus payouts. The retirement age will be extended to 60 years, with the option to work beyond that age without a salary reduction for the first few years. The union confirmed this amendment would require a change in relevant legislation.

In addition to the wage enhancements, the agreement commits Hyundai Motor to hire 500 new technical workers from next year through 2028. Hyundai Motor has not yet commented on the tentative agreement beyond regular business hours. The union had previously demanded that the company allocate 30 percent of net income to bonuses and guarantee job security in light of increasing robotics and artificial intelligence adoption.