“A tentative agreement after 111 days” … Hyundai Motor Company labor and management move to address strike losses

사진 확대 “A tentative agreement after 111 days” … Hyundai Motor Company labor and management move to address strike losses [Photo courtesy of Hyundai Motor Company]

Hyundai Motor Company announced on the 25th that labor and management had reached a tentative agreement in wage negotiations for 2026. The deal came 111 days after the first meeting, with a focus on minimizing disruptions to second-half production and new vehicle launches.

The two sides drew up the tentative agreement during the 16th wage negotiation session held that day in the Donghaeng Room at the main building of the Ulsan Plant. The talks had dragged on since July, including a union strike, raising concerns over production disruptions, wage losses for employees, and financial strain on parts suppliers.

Hyundai Motor Company said, “We deeply agreed that we had to conclude the negotiations to prevent further damage from the strike, ensure the company’s survival, promote mutual growth with suppliers, and support the recovery of the local economy.” It added, “We decided to focus all our efforts on our core role, including second-half production and new vehicle launches, to quickly recover from the strike’s impact, ease domestic and external uncertainty, and create an opportunity for greater growth.”

The agreement includes a 100,000 won increase in base pay, including seniority-based raises, a performance bonus of 400% plus 12.7 million won, 15 company shares, and 500,000 won in welfare points. The two sides said wages and bonuses were calculated based on last year’s business results and this year’s business conditions.

The agreement also covers the response to future industrial transformation. The two sides agreed that introducing future technologies such as Physical AI and Robotics is essential for the company’s survival. They will share progress on new businesses and technologies and jointly respond to industrial transformation. They also plan to discuss institutional improvements, productivity, and stronger manufacturing competitiveness.

The deal also includes a hiring plan. Hyundai Motor Company said large-scale reassignment is scheduled as domestic plants are reorganized, making new hiring difficult. Even so, the company said the two sides agreed to hire 200 skilled workers in the second half of 2027 for key positions and 300 more in 2028.

A Hyundai Motor Company official said, “We are deeply sorry for causing concern to countless stakeholders, including shareholders, customers, and parts suppliers, due to the prolonged negotiations and strike.” The official added, “Because we reached this difficult agreement out of a shared sense of urgency that no further damage should be allowed, we will devote all our efforts to second-half production and new vehicle production and repay customer support with world-class mobility of the highest global quality.”

This article has been translated by GripLabs Mingo AI.