Hyundai Motor Labor and Management Conclude Wage Negotiations Without Strikes for 4 Consecutive Years

Hyundai Motor Union is counting the votes of union members for the tentative agreement on this year's wage and collective agreement at the union office on the 19th.

[Asia Economy Reporter Choi Dae-yeol] Hyundai Motor Company’s labor and management have concluded wage negotiations without strikes for the fourth consecutive year.

On the 19th, the Hyundai Motor Labor Union conducted a provisional agreement vote among 46,413 union members, with 39,125 participating. The agreement was approved with 24,225 votes (61.9%) in favor. This year’s agreement includes a wage increase of 108,000 KRW (including allowances), performance and incentive bonuses of 300%, and 5.5 million KRW, among other terms. Additionally, an electric vehicle-dedicated factory will be built within the Ulsan plant, and new production and technical staff will be hired in the first half of next year. The wage system will also be revised considering the characteristics of different job categories.

During this year’s wage negotiations, differences of opinion led to a suspension of mediation and even a strike resolution, but ultimately the negotiations concluded without any disputes. This marks the fourth consecutive year since 2019. It is the first time that the company’s labor and management have achieved a four-year streak of dispute-free agreements.

Some union members expressed dissatisfaction with the wage increase rate and performance bonuses, but it is understood that considerations such as ongoing war risks and continued production disruptions due to parts supply shortages influenced the decision. From the management side, the wage increase rate was higher compared to the past, and concrete plans for domestic plant investments were made, leading to an evaluation that both labor and management secured practical benefits through the negotiations.

Following the union vote’s approval, labor and management will hold a wage negotiation signing ceremony at the Ulsan plant on the 21st. An industry insider commented, "The voting results demonstrate the union members’ support for four years of dispute-free agreements," adding, "The rational negotiation process contributed to building trust between labor and management."

This content was produced with the assistance of AI translation services.