Hyundai strike ends with tentative wage deal
What's the story
Hyundai Motor Company and the union representing its employees have reached a tentative agreement on wages and bonuses. The development comes after a rare full-day strike by around 40,000 workers at South Korea's largest carmaker on Friday. It was the first such action in a decade. The union announced on Monday that they had returned to negotiations with Hyundai and postponed planned strikes for early this week.
Deal details
Tentative agreement reached: Hyundai
Hyundai confirmed on Tuesday that a "tentative agreement" had been reached. The union said the company has agreed to partially meet its demands.
"We agreed to increase the basic monthly salary by 100,000 won ($72) and pay a bonus equivalent to four months' salary," the union told AFP in a statement.
Additional provisions
Hyundai promises to raise retirement age once legislation is passed
The tentative agreement also includes a promise from Hyundai to raise the retirement age once legislation is passed nationwide, increasing it from 60 years to 65.
The company has also agreed not to implement the wage peak system, which gradually cuts older workers' salaries in their final years of service after this increase in retirement age.
Union members are set to vote on these proposals on August 31.
Company response
Hyundai reported record 2nd-quarter revenue amid strike losses
A Hyundai spokesperson acknowledged the dedication of their employees and the hard work of their negotiating teams in reaching this tentative agreement.
The company's workers have staged a total of 60 hours of strikes this year, causing an estimated loss of some $1.6 billion, according to calculations by local news agency Newsis.
Despite these challenges, Hyundai reported record second-quarter revenue of 49.2 trillion won but saw operating profit fall by 20.8% year-on-year amid weaker sales.