Hyundai Motor reaches wage agreement with union after strikes

Hyundai Motor Company and its labor union have reached a final agreement on the 2024 wage and collective bargaining negotiations. The tentative agreement was approved by union members with a 61.55% 찬성 (approval) rate in a recent vote.

Key terms of the agreement include a 100,000 KRW monthly increase in base pay, a performance bonus of 400% plus 12.7 million KRW, the distribution of 15 shares of stock, 500,000 KRW in welfare points, and a 200,000 KRW increase in summer vacation allowances. Additionally, the company agreed to hire 500 technical workers between late 2025 and 2028 and will withdraw all damage claims and provisional attachments against the union. The agreement also includes provisions for extending the retirement age without expanding the wage peak system, subject to legal amendments.

The negotiations followed a period of significant industrial action, including a full-scale eight-hour strike—the first in a decade—and a total of 60 hours of strikes per member. These disruptions resulted in approximately 120 hours of production line stoppages, with industry estimates suggesting a production shortfall of 55,200 vehicles and a revenue loss of at least 2.3 trillion KRW. Hyundai Motor stated it will focus on stabilizing production and quality for the second half of the year.