Agreement Reached with Jigok Plant Union:
400% Bonus Plus 13.2 Million KRW
Both Major Unions Conclude Wage and Collective Bargaining
Conflict Resolved
Hyundai Transys, an affiliate of Hyundai Motor Group, which experienced difficulties in wage and collective bargaining negotiations last year and even went on strike, has reached an agreement between labor and management.
According to industry sources on the 13th, the Hyundai Transys Jigok Plant Labor Union has finalized the wage and collective agreement. The agreement includes a base salary increase of 101,000 KRW (including step increases), a management performance bonus of 300% and 7 million KRW, an encouragement bonus of 100% and 5 million KRW, an incentive of 1 million KRW, and gift certificates worth 200,000 KRW. This is the same as the agreement reached by the Seongyeon Plant union last year. Hyundai Transys has two unions: the Jigok Plant union and the Seongyeon Plant union.
In the membership vote held on the 10th, 1,180 out of 1,215 members (97.1%) participated. The wage negotiation proposal was approved by 60.7% (716 members), and the collective agreement was agreed upon by 73.4% (866 members).
As a result, the labor-management relations, which had worsened last year due to strikes, are now showing signs of resolution. The Jigok Plant union, the largest union at Hyundai Transys, conducted a full strike from October to November last year. This caused production disruptions in the transmission supply to Hyundai Motor and Kia. Hyundai Transys also entered an emergency management system, including a 20% salary cut for all executives, including the CEO.
A Hyundai Transys official stated, "We have concluded the wage and collective agreement with the union and will prepare for a better future with renewed determination in 2025."
As the Hyundai Transys labor union, a key parts affiliate of Hyundai Motor Group, continues its strike for nearly a month, representatives from partner companies are conducting a public campaign on November 6 last year in Seosan, Chungnam, where Hyundai Transys' largest factory is located, appealing for the strike to be halted due to the management crisis. Photo by Yonhap News
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