Hyundai Motor has reached a tentative agreement with its unions over wages and benefits following a series of partial strikes.
Details of the agreement, which must be approved by a vote of Hyundai’s 46,000 unionised workers, were not known, news agency AFP reported.
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Workers have staged a series of partial strikes since 16 August, resulting in what the company said was lost production of 50,000 vehicles worth about KRW1 trillion (US$910,000).
Among other demands, the unions want a KRW130,500 increase in basic monthly salary for workers and a shared cash payment for members amounting to US$2.4bn – or 30% of last year’s net profit at the carmaking group.
Management insists it cannot afford to meet such demands at a time of heightened competition and slowing growth in overseas markets.
Hyundai has been hit by almost yearly strikes. Last year’s stoppages cost the company about 82,000 vehicles worth KRW1.7 trillion in lost production.
