HYUNDAI MOTOR-LABOR UNION REACHES AGREEMENT

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The Hyundai Motor labor union tentatively agreed on this year’s collective bargaining terms for wage increase without holding a strike. This marks three straight years of strike-free pay negotiation which happened only once before ten years ago.

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The management and labor union of Hyundai Motor agreed to collective bargaining terms for this year’s wage in their 17th round of negotiation. This is only the second time since 2011 that a tentative deal was reached without a strike. It also marks three straight years of wage negotiation free from industrial action taken by the union. But the process hasn’t been easy. Management and labor leadership kept wrangling until the very last moment of the negotiation deadline. The tentative agreement includes such terms as a 75,000-won increase in basic monthly salary, a 200% performance pay plus a 5.8 million won bonus, and 100,000 won in traditional market gift certificates. However, they could not agree on the extension of the retirement age and reinstatement of laid-off workers. As for the key issue of future job security, management agreed to maintain employment by preparing new projects in local plants and research centers. The resurgence of COVID-19 appears to have played a big part in prompting the union to settle without a strike. Lack of automotive semiconductors also weighed heavily on the whole industry, causing both sides to opt for coexistence rather than conflict. The Hyundai Motor labor union will put this tentative deal to a vote of all members on July 27th. If a majority decides to accept the agreement, this year’s collective bargaining will come to a close.