Hyundai Motor reaches wage deal

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Hyundai Motor reaches wage deal

Hyundai Motor and its union reached an agreement on wages, the automaker said Tuesday.

It is the first time in eight years the two parties achieved a deal without a strike.

While a tentative agreement had been reached last week, the 50,105-member union voted on finalizing the deal Monday. Among 43,871 members who participated in the vote, 56.4 percent voted in favor.

Under the terms of the agreement, the company will raise basic salaries by 40,000 won ($32.91) a month. As for performance-based incentives, 150 percent of the basic monthly salary as well as 3 million won in cash and 200,000 won of traditional market gift certificates will be granted.

The company also agreed to give a cash bonus of between 2 million won and 6 million won depending on seniority on top of 15 Hyundai Motor shares to each worker.

The two sides also agreed to cooperate in localizing auto parts and materials in the wake of export restrictions imposed by Japan.

This year, the union had earned the right to go on strike from the National Labor Relations Commission, but it did not put it into action considering economic and political uncertainties surrounding the local market spurred by the U.S.-China trade war and a trade spat between Korea and Japan.

Businesses welcomed the decision by the union.

The Korea Enterprises Federation said that “the agreement between Hyundai Motor and its labor union is positive news for the local auto industry as well as the overall economy.”

Prime Minister Lee Nak-yon said he was “grateful for the mature decision between the company and labor to finalize a wage deal without walkouts and deciding to invest in localizing auto parts and materials and support suppliers.”

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