Strike Costs 2.3 Trillion Won! Hyundai Motor Reaches Labor Deal with Pay Hikes and Stock Bonuses

Hyundai Motor has reached a preliminary wage agreement with its labor union, signaling a potential end to months of labor disputes. The conflict had previously triggered strike actions and heightened concerns over growing production losses.

On Tuesday (25th), Hyundai Motor announced that the agreement includes a monthly base salary increase of 100,000 Korean won (approximately 72 USD), along with performance-based bonuses equivalent to 400% of monthly wages plus an additional 1.27 million won. Employees will also receive 15 shares of Hyundai Motor stock, 500,000 won in welfare points, and an extra 200,000 won summer vacation allowance.

Additionally, Hyundai Motor agreed to hire 500 new production line workers in 2027 and 2028. Union members are scheduled to vote on this preliminary agreement on August 31.

This agreement could help resolve the rapidly escalating labor conflict this month. After conducting multiple partial work stoppages over wages, bonuses, and other labor conditions, Hyundai Motor employees launched a full-day strike on August 21—the first such action since 2016.

The strike, involving approximately 39,000 employees, significantly disrupted production. According to industry sources cited by Yonhap News Agency, cumulative production losses this year could cost Hyundai Motor at least 2.3 trillion won. During this year's wage negotiations, the union conducted about 60 hours of strike activities in total.

Meanwhile, Kia's labor union, having secured legal strike rights, has announced plans to begin partial strikes starting August 26, which may end a five-year streak of reaching wage agreements without striking.