Hyundai Motor Reaches Tentative Wage Deal for This Year... Retirement Age Extension Deferred (Comprehensive)

Base Pay Raised by 100,000 Won, Performance and Incentive Bonus of 450% Plus 15.8 Million Won
Retirement Age Extension Discussions Postponed to Next Year

Hyundai Motor Company’s labor and management have reached a tentative agreement on this year’s wage and collective bargaining negotiations. Both sides agreed that, in order to overcome the current crisis, they should withdraw partial strikes and normalize production. There was also a consensus on the need to continue fostering future vehicle talent and producing parts at domestic plants. However, discussions on extending the retirement age did not reach an agreement and have been postponed to next year’s negotiations.

On September 9, Hyundai Motor’s labor and management announced that they had produced a tentative agreement during the 21st round of wage and collective bargaining negotiations held at the main building’s Donghaeng Room at the Ulsan plant. The main points of the tentative agreement include a 100,000 won increase in base salary (including step increases), a performance and incentive bonus of 450% plus 15.8 million won, 30 shares of stock (10 common shares and 20 preferred shares), and a 200,000 won traditional market gift certificate.

The union’s key demand to extend the retirement age was not accepted. In this agreement, both sides decided to maintain the current continued employment system (one year of employment plus another year after mandatory retirement) and to continue labor-management discussions in preparation for possible legal amendments in the future.

Previously, the Hyundai Motor union had demanded that the current retirement age of 60 be extended to the end of the year prior to the start of national pension payments (up to 64 years old). In response, Hyundai Motor President Lee Dongseok issued a statement on September 5, saying, “Rather than getting caught up in issues that may affect different job groups, classes, and generations differently, let’s focus on rewarding the hard work of all employees-a common agenda for everyone-and bring negotiations to a close,” thus indirectly expressing his refusal.

In June, representatives of Hyundai Motor Company labor and management held a preliminary meeting for wage and collective agreement negotiations at Hyundai Motor's Ulsan plant. Photo by Hyundai Motor Company

Additionally, to resolve confusion over the scope of ordinary wages following last year’s Supreme Court en banc ruling, labor and management agreed to include wage system improvement adjustments and research efficiency bonuses in ordinary wages. Furthermore, both sides will establish a joint labor-management task force to continue discussions on key issues such as reducing working hours and improving the wage system.

Labor and management also agreed to actively promote the training of software specialists and the production of next-generation powertrain core components at domestic production plants. Through these efforts, they aim to secure both the quality competitiveness of software-defined vehicles (SDVs) and employment stability for employees.

A Hyundai Motor representative stated, “Amid the interest and concerns of customers, partners, and various stakeholders regarding this year’s negotiations, Hyundai Motor’s labor and management have reached a tentative agreement, reflecting their determination for future survival and overcoming the crisis. In order to repay the support of our customers, both labor and management will work together to produce the highest quality automobiles.”