Hyundai Motor union secures collective agreement without strike for sixth year in a row

Hyundai Motor Company workers and management have concluded their collective bargaining negotiations without a strike for the sixth consecutive year and agreed on the highest wage increase in the company’s history.

The union said on Saturday that its members had voted to accept a preliminary wage agreement reached earlier this week.

Under the agreement, Hyundai will increase workers’ monthly base salary by 4.65 percent, or 111,200 won ($81), and pay each worker a one-time performance-related bonus of 500 percent of the monthly base salary plus 18 million won. In addition, each employee will receive 25 company shares.

The company also agreed to extend the maximum period for rehiring former professionals as contract workers from the current one to two years.

The collectively agreed wage increase is the highest in the company’s history.

Because union members voted for the deal, the automaker has been able to end collective bargaining negotiations without a strike since 2019.

The agreement was reached just two days before the union was scheduled to strike. The union reportedly withdrew the strike plan after management agreed to the highest-ever wage increase and the two-year reemployment program for skilled retired workers.

“The union and management will conscientiously assume their social role as members of the global community and work together to prepare a better future,” the automaker said in a statement.

Both sides will hold a signing ceremony for this year’s collective agreement on Monday. (Yonhap)