Unionised Hyundai Motor workers in South Korea have agreed to end strikes that may have cost the company over KRW900bn (US$847m) in lost output after they accepted the carmaker’s proposal to increase pay.
A tentative accord between labour representatives and Hyundai that included raising monthly base salaries by KRW98,000 was backed by the company’s 47,000 guild members, union spokesman Hwang Ki Tae told Bloomberg News.
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The agreement helps end strikes that are estimated to have cost the company more than 40,000 vehicles in lost production, according to some analysts.
In addition to the base salary increase, the wage agreement includes a one-time payout of KRW8.9m and bonuses worth 450% of a worker’s monthly salary Bloomberg said, citing a statement on the union’s website. This is equivalent to an average of KRW27.2m extra per person on an annual basis, according to the statement.
The report noted bonuses had been at the centre of this year’s annual wage negotiations after the country’s supreme court ruled in December that periodic bonuses and other compensation must be included in workers’ base pay. Hyundai and affiliate Kia Motors had been sued in court by their unions over the issue, with verdicts still pending.
The company probably lost about 40,000 vehicles of output, equivalent to more than KRW900bn, from the partial strikes that began on 22 August, according to the average of five analysts’ estimates in a Bloomberg News survey.
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