Hyundai Motor labor and management reach tentative wage agreement after 111 days; union members to vote on the 31st

[Financial News] Hyundai Motor Company labor and management finalized a tentative wage agreement for this year on the 25th. The result came after the 17th round of negotiations, which ran overnight on the 24th and 25th at the Ulsan Plant. If the agreement passes the union members' approval vote on the 31st, the wage talks will be concluded 111 days after the first meeting on May 6.
Under the wage package, monthly base pay will rise by 100,000 won. In addition, performance pay will be set at 400% plus 12.7 million won. Beyond cash compensation, employees will also receive 15 shares of stock, welfare points will increase by 500,000 won, and summer vacation allowances will rise by 200,000 won.
On staffing, the company agreed to hire 500 new technical workers, or production workers. The hiring will be split into two stages, with 200 workers recruited in the second half of next year and the remaining 300 in 2028.
Legal disputes surrounding union activity were also settled through the agreement. The company will lift all 10 provisional asset seizure orders that had been filed over alleged damages linked to union activities. However, the bonus increase issue, which had been a major point of contention in the talks, was left unresolved and will be discussed again in next year's collective bargaining. The union's demand to raise the retirement age will not be implemented immediately. It will apply only if related laws are revised, and the agreement also excludes any separate expansion of the wage peak system.
This year's negotiations were far from smooth. Disputes over bonus increases, retirement-age extensions, and the treatment of union members dismissed over past labor activities could not be narrowed, prompting the union to resort to strikes for a second straight year after last year. Since mid-last month, it had carried out partial strikes, and on the 21st it staged a full strike for the first time in 10 years, lasting eight hours.
The cumulative strike time reached 60 hours, but because the morning and afternoon shifts stopped together, production-line shutdowns amounted to 120 hours. Based on Hyundai Motor Company's hourly output, the disruption so far is estimated at 54,000 vehicles, with sales losses of 20.128 billion won.
As production disruptions spread to suppliers and workers' wage losses mounted under the no work, no pay principle, the two sides eventually found a compromise. In the agreement, labor and management said they would focus their efforts on second-half production and new vehicle launches, quickly resolve the impact of the strikes, and remove uncertainty.
Beyond wages, the talks also stood out for strengthening the company's response to the future. Labor and management agreed that introducing new technologies such as physical AI and robotics is unavoidable for survival. They also decided to share progress transparently and respond jointly. They plan to pursue institutional reforms and strengthen manufacturing competitiveness so the company can move beyond its traditional manufacturing-centered approach and embrace change.
[Financial News] A Hyundai Motor Company official said, "We are deeply sorry for causing concern to shareholders, customers, parts suppliers and many other stakeholders due to the prolonged negotiations and strikes." The official added, "We will repay customers' support with the world's best-quality mobility."

[email protected] Kim Dong-chan Reporter