SEOUL, Sept. 19 (Yonhap) — Hyundai Motor Co. declared on Tuesday that its unionized employees have accepted the wage deal for this year, avoiding a strike for the fifth consecutive year.
The arrangement involves a raise of 111,000 won (US$84) in basic pay, three months of performance-based pay, a cash bonus of 10.5 million won, one month’s salary in incentives, 15 Hyundai stocks, and 250,000 won in gift certificates per individual.
The union accepted the deal to help the firm withstand growing uncertainties, such as the prolonged Russia-Ukraine war, high oil prices, and high consumer prices, amid a global economic downturn, Hyundai said in a statement.
Hyundai initially proposed a raise of 106,000 won in basic pay, 3 1/2 months of performance-based pay, and a cash bonus of 8.5 million won per person.
But the 44,000-strong union demanded an increase of 184,900 won in basic salary, 30 percent of the company’s net income last year, nine months worth of salary in bonuses for its members, and the extension of the retirement age from 60 to 64.
Hyundai and the union have agreed to continue talks on the retirement age extension in line with potential changes to government rules and social norms on the issue.
The wage deals come as the company posted a 39 percent year-on-year surge in net profit in the January-June period at 6.77 trillion won helped by a weak won and high-end models.
Hyundai has seven domestic plants in Korea and 11 overseas plants — four in China and one each in the United States, the Czech Republic, Turkey, Russia, India, Brazil, and Indonesia. Their combined capacity reaches 5.65 million vehicles per year.
This file photo, provided by Hyundai Motor Co. on June 13, 2023, shows the company's management and labor union holding preliminary wage talks. (PHOTO NOT FOR SALE) (Yonhap)
kyongae.choi@yna.co.kr
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