Hyundai Motor reaches tentative wage deal with union

Hyundai Motor and its labor union have reached a tentative wage agreement, concluding a period of industrial action that disrupted production at the South Korean automaker. The breakthrough occurred during the 17th round of negotiations, according to Yonhap News Agency. The new deal increases monthly base pay by Won100,000 ($72.20), adds a performance bonus worth over 400% of the monthly salary, and includes a separate lump-sum payment of Won12.5m.

Both parties also agreed to transparently share information on new projects and respond collectively to future industry changes. The retirement age will be raised from 60 to 65, though this aspect depends on changes to relevant laws and regulations. Union members will vote on the agreement on August 31st, formally ending this year's wage talks at Hyundai Motor, the country's largest carmaker.

The union, representing 400,000 workers, engaged in 60 hours of strikes throughout the year, resulting in about 120 hours of lost production across two shifts, including a full-day walkout on August 21st, the first in ten years. The deal covers pay, retirement, and the adoption of advanced technologies like AI and robotics to maintain the company's competitive edge.

Hyundai Motor, which owns Boston Dynamics, is also planning to introduce humanoid robots at its Georgia manufacturing plant in 2028. The strikes followed a challenging financial quarter, with Hyundai Motor's net earnings dropping 11% year-on-year to Won2.88tn in the second quarter of 2026, down from Won3.25tn in the same period last year.

This decline was attributed to rising raw material and energy costs due to Middle East tensions and a fire at a key engine parts supplier in March, which curtailed domestic output.