Hyundai Motor, Successfully Reaches 3rd Consecutive Year of Dispute-Free Wage and Collective Bargaining Agreement

[Asia Economy Reporter Changhwan Lee] Hyundai Motor Company’s labor and management have concluded wage and collective bargaining negotiations for the third consecutive year without any disputes.

On the 28th, the Hyundai Motor Labor Union announced that in the vote on the tentative agreement for this year’s wage and collective bargaining, conducted among all 48,534 union members, 42,745 members (voter turnout 88.07%) participated, with 24,091 members (56.36%) approving the agreement.

The tentative agreement includes a monthly base salary increase of 75,000 KRW (including step increments), a performance bonus of 200% plus 3.5 million KRW, a quality improvement and accident prevention incentive of 2.3 million KRW, a special agreement for securing future competitiveness with 5 shares of stock, 200,000 points for the two-shift continuous weekday system, and 100,000 KRW worth of traditional market gift certificates to revitalize the local economy, which has been stagnant due to the prolonged COVID-19 situation.

Hyundai Motor’s labor and management concluded negotiations 63 days after the initial meeting on May 26, and reached an agreement without strikes for the third consecutive year.

This marks the second time in history that Hyundai Motor’s labor and management have reached a no-dispute agreement for three consecutive years, following the period from 2009 to 2011.

In 2019, negotiations were completed without strikes due to the impact of the Korea-Japan trade dispute, and last year, due to concerns over the COVID-19 pandemic.

The signing ceremony is scheduled to be held on the 29th at the main building of the Ulsan plant.