Hyundai Motor's union reaches tentative wage deal, averting more strikes

Hyundai Motor's ‌South Korean union ​said on Tuesday it has reached a tentative agreement with management, averting further production losses after staging its first full ‌strike in a decade on Friday, following a series of partial stoppages.

The union had demanded higher bonuses, an increase in the retirement age, and job protections against artificial intelligence and automation. The ‌tentative agreement includes a base salary increase of 100,000 won ($72.31) per month plus a ‌performance bonus equivalent to 400% of base pay and additional payouts in cash and bonuses.

The retirement age will be extended from the current 60 upon amendment of a relevant law, without reducing salary for the first ⁠few ​years after 60, the ⁠union said. From next year until 2028, 500 new technical workers will be hired.

Hyundai Motor did not immediately ⁠respond to a Reuters request for comment outside regular business hours. The union had demanded the company ​set aside 30% of net income for bonuses and guarantee job security, raising ⁠concerns over the growing adoption of robotics and artificial intelligence on assembly lines.

Regarding union demands on job security related ⁠to ​AI, the two sides agreed to discuss matters related to employment when it comes to rolling out new businesses, according to the agreement seen by Reuters. Hyundai, which owns ⁠humanoid robot maker Boston Dynamics, has said it plans to deploy humanoid robots at its ⁠U.S. plant in Georgia ⁠from 2028, with the aim of expanding their use across its production sites.

($1 = 1,382.8900 won)