Hyundai Motor union vote to accept 2023 wage deal

Corporate Newsroom 00:17 September 19, 2023

SEOUL, Sept. 19 (Yonhap) -- Hyundai Motor Co. said Tuesday its unionized workers have voted to accept this year's wage deal, averting a strike for the fifth consecutive year.

The deal includes an increase 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 worth of salary in incentives, 15 Hyundai stocks and 250,000 won in gift certificates per person.

The union accepted the deal to help the company ride out increasing uncertainties, such as the extended Russia-Ukraine war, high oil prices and high consumer prices, amid a global economic slowdown, Hyundai said in a statement.

Hyundai initially proposed an increase 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 possible changes to government rules and social norms on the issue.

The wage deals came as the company posted a 39 percent on-year jump 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.