Hyundai Motor and Union Reach Record Salary Increase Agreement

TapTechNews July 15th news, Hyundai Motor of South Korea and its union have reached a salary increase agreement for six consecutive years, avoiding the occurrence of a strike, and the salary increase rate this time has set a new historical high.

The union said on Saturday that its members voted to pass the tentative agreement reached earlier this week. According to the agreement, Hyundai Motor will increase the workers' wages by 4.65%, that is, increase by 111,200 Korean won per month (TapTechNews note: currently about $86.5), and give each worker a one-time performance bonus equivalent to 500% of the basic monthly salary, plus 18 million Korean won (currently about $14,000). According to Yonhap News Agency, in addition, each employee will also be given 25 shares of the company's stock.

As part of the agreement, the company also agreed to extend the maximum period for rehiring retired technical workers as contract workers from the current 1 year to 2 years.

The salary increase rate this time is the highest in the history of Hyundai Motor. With the union members voting in favor of the agreement, the car manufacturer has achieved six consecutive years of non-strike renewal since 2019.

The agreement was reached two days before the union's originally scheduled strike, and the union withdrew its strike plan after the agreement was reached. The two sides will meet on Monday to hold a signing ceremony for this year's salary agreement.