Hyundai Motor union reaches tentative wage deal

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Hyundai Motor union reaches tentative wage deal

Hyundai Motor’s labor union has reached a tentative wage deal with management, ending concerns that protracted talks, possibly extending into next year, could further hurt the company already struggling to cope with tough times, company sources said Tuesday.

After 39 rounds of negotiations, union leaders at Korea’s largest automaker accepted a revised wage package offered by the company, union spokesman Hong Jae-gwan said.

In its revised offer, Hyundai Motor will raise workers’ basic monthly salary by 58,000 won ($53) and provide bonuses worth 300 percent of basic pay plus 3 million won in extra compensation, the union said.

The union initially demanded Hyundai raise workers’ basic monthly salary by 154,883 won and offer a bonus of 30 percent of the company’s 2016 net profit of 5.72 trillion won.

The company, however, countered that it could provide a salary increase of 42,879 won per month and bonuses worth 200 percent of basic pay plus 1 million won in incentives.

When that offer was rejected by the union, the company suggested bonuses of 250 percent of basic pay plus 1.5 million won in extra compensation as a revised offer.

“The company and union reached an agreement in this year’s wage deal as the two sides took the company’s deteriorating operating profit seriously amid an unfriendly business environment,” Hyundai Motor said in a statement. The agreement will be put to a vote on Friday by 51,000 union members for final approval.

This year, industrial actions by the union have cost the company 1.31 trillion won, or 62,600 vehicles, in production losses, the company said.

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