Hyundai Motor labor and management reached a tentative wage agreement early this morning, Tuesday, August 25, featuring a performance bonus of over 400% and a 100,000-won hike in monthly base pay.

If the tentative agreement passes a union member vote on the 31st, this year's wage negotiations will be finalized.

Labor and management drew up the tentative agreement during their 17th round of negotiations, which spanned two days from yesterday through early this morning at the Ulsan plant.

Aside from the base pay hike, the tentative agreement includes a performance bonus of 400% plus 12.7 million won, 15 company shares, 500,000 won in welfare points, and a 200,000-won increase in summer vacation allowances.

Separately, they agreed to newly hire 500 technical (production) workers, including 200 in the second half of next year and 300 in 2028.

The raise in regular bonuses, which had been a point of contention in this year's negotiations, will be re-discussed in next year's collective bargaining, and the extension of the retirement age will be implemented upon legal amendment without expanding the peak wage system.

The company also agreed to drop all 10 damage suit provisional seizures it had filed against the union over illegal activities during past union activities.

During this year's negotiations, labor and management clashed over raising regular bonuses, extending the retirement age, and welfare for union members dismissed for illegal acts during past collective bargaining processes.

Amid this process, the union went on strike for the second consecutive year, following last year.

After starting with two-hour daily strikes from July 13 to 15, they launched intermittent walkouts and went on a full eight-hour strike on the 21st for the first time in 10 years.

Cumulative strike hours for this year totaled 60 hours, and because morning and afternoon shifts each went on strike, production line halts doubled to 120 hours.

The automotive industry estimates that production setbacks reached a total of 55,200 units, resulting in cumulative sales losses exceeding 2.3 trillion won based on vehicle unit selling prices.

Labor and management faced considerable turbulence due to repeated strikes, but reached an agreement as production disruptions piled up even among partner suppliers and employee wage cuts grew under the "no work, no pay" principle.

This comes 111 days after their initial meeting on May 6 this year.

Labor and management stated, "We have gathered our intentions to swiftly recover from the aftermath of the strikes by concentrating all-out efforts on core roles such as second-half production and new vehicle launches, resolve internal and external uncertainties, and create opportunities for a greater leap forward."

Both sides also attached significance to laying the groundwork in this year's negotiations to preemptively respond to upcoming future industry changes.

Labor and management formed a consensus that adopting future technologies such as physical artificial intelligence (AI) and robotics is indispensable for corporate survival.

Accordingly, they agreed to transparently share progress regarding future new businesses and technologies, and to jointly respond to the transition of future industries.

Labor and management agreed to make joint efforts to break away from conventional manufacturing-centered practices, embrace change, and pursue institutional improvements and enhanced manufacturing competitiveness.

(Photo provided by Hyundai Motor, Yonhap News)