Management, labor of Hyundai Motor reach wage hikes, work system deal
The management and labor union of South Korea's leading automaker Hyundai Motor Co. on Thursday reached a temporary agreement on wake hikes and shorter working hours after months of negotiations.
The agreement calls for introducing a two-shift daytime work system. It also includes a wage hike of 98,000 won (US$87), or 5.4 percent, with additional bonuses.
The new working system will start from March next year, according to the agreement. The company changed the system for the first time in 45 years.
Both parties started negotiations on May 22 but failed for months to reach an agreement.
The unionized workers of Hyundai Motor have staged partial strikes for a total of 12 hours since July to demand shorter working hours and higher wages.
Hyundai Motor estimated that the walkout caused a production loss of 79,362 vehicles, worth 1.6 trillion won.
"We agreed that the new working system will improve the quality of life of our workers and lead to produce better cars," said the company.
The temporary agreement will be put to a vote of the members of the union on Monday next week to be finalized.
Shares of Hyundai Motor traded at 245,000 won on the Seoul bourse as of 11:30 a.m., down 0.41 percent from the previous session.