Hyundai Motor has accepted a union proposal requiring the company to consult with the union when pursuing new businesses.
Hyundai Motor (005380.KS) management and its union reached a tentative agreement to this effect during their 12th round of wage negotiations held Thursday, according to industry sources.
The two sides agreed that the company will proceed through labor-management consultation when developing new businesses or handling employment-related issues such as workforce management. While management had previously opened a channel for the union to intervene in management only in the automobile division, it has now opened a channel for the union to voice its opinions across all businesses, including artificial intelligence, robotics, and hydrogen.
Management also accepted the union’s demand to internalize core electrification components such as batteries. The union has demanded in-house production of components, viewing that procuring core parts externally could increase restructuring pressure on existing workers.
Hyundai Motor management and its union agreed to build a specialized system that can create synergy with the passenger vehicle business in relation to the next-generation hydrogen fuel cell business. They also agreed to complete construction of the Ulsan electric vehicle plant by 2027.
The two sides failed to reach an agreement on this year’s wages. Management proposed a negotiation package centered on a 79,000 won increase in base pay and management performance-based pay of 350% plus 9 million won, but the union did not accept it.