Hyundai Motor and its labour union have arrived at a tentative wage agreement, bringing an end to a period of industrial action that had hit production at the South Korean automaker. <\/p>\n
According to Yonhap News Agency, the breakthrough came during the 17th round of negotiations between the two parties. <\/p>\n
Under the terms agreed, monthly base pay will rise by Won100,000 ($72.20), alongside a performance bonus worth more than 400% of monthly salary and a separate lump-sum payment of Won12.5m. <\/p>\n
“The two sides agreed to transparently share information on new projects and their implementation processes, and jointly respond to future changes in the industry”, the company was quoted as saying. <\/p>\n
Yonhap also reported that the retirement age will be pushed back from 60 to 65, though this element of the deal depends on corresponding changes to relevant laws and regulations. <\/p>\n
Union members are due to vote on the agreement on 31 August, a step that would formally close out this year’s wage talks at the country’s largest carmaker. <\/p>\n
The union, which represents 400,000 workers, carried out a total of 60 hours of strike action over the course of the year, leading to roughly 120 hours of lost production across two shifts. <\/p>\n
Among these was a full-day walkout<\/a> on Friday (21 August 2026) \u2013 the first of its kind from the union in ten years. <\/p>\n Industry estimates put the cumulative cost of the disruption at around 55,200 vehicles in lost output, with forgone sales topping Won2.3tn. <\/p>\n Beyond pay and retirement terms, management and the union also reached common ground on the need to adopt advanced technologies such as physical artificial intelligence and robotics to secure the company’s long-term competitive position. <\/p>\n The wage settlement comes as Hyundai Motor, which owns<\/a> Boston Dynamics, presses ahead with plans to introduce humanoid robots at its manufacturing plant in Georgia, in the US, starting in 2028, with further rollout planned across other production sites over time. <\/p>\n The disruption caused by the strikes came after a difficult quarter financially. <\/p>\n Hyundai Motor’s net earnings fell 11% year-on-year to Won2.88tn in the second quarter of 2026<\/a>, down from Won3.25tn in the same period last year. <\/p>\n The company attributed the decline to elevated raw material and energy costs stemming from the conflict in the Middle East, compounded by a fire at a key engine parts supplier in March that constrained domestic output. <\/p>\n