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

​Hyundai Motor's South Korean union said ‌on ​Tuesday it reached a tentative agreement with the company's management, averting further production losses after its lengthiest walkout in a ‌decade. Hyundai Motor shares were flat, while the broader market was down 2%. The labour deal is subject to approval by union members on Monday.

The union staged its first full ‌strike in a decade on Friday, following a series of partial stoppages since July, demanding ‌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 4.1% 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. From next year until 2028, 500 new technical workers will be hired.

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.

"Both parties recognize that advanced technologies such as physical AI and robotics ⁠are essential part ⁠of the future of mobility," Hyundai Motor said in a statement. ($1 = 1,382.8900 won)