Hyundai has reached agreement with its labour unions on wages and working conditions, bringing to an end the costliest dispute in the carmaker’s history.
The union has staged 28 partial strikes since stoppages began on 13 July, cutting production by more than 82,000 vehicles valued at around US$1.5bn.
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Workers have narrowly decided to accept proposals that would end a round-the-clock shift system in operation for decades. The agreement, effective from March 2013, means the introduction of a two-shift daytime work system, ending at 1:00am.
There will also be a KRW98,000 (US$87) increase in basic monthly salary, a performance-based bonus equivalent to five months wages plus a one-off payment.
Hyundai said its 44,000-strong union workforce resumed full production from today (4 September). Total sales in August were down 4.6% from a year ago at 293,924 vehicles. Domestic sales fell 30% to 35,950 units while 257,974 vehicles were exported, up 0.4%.
Affiliate Kia Motors has also been hit by similar industrial action and its union plans an eight-hour strike tomorrow. Since 13 July, Kia’s output has fallen by 45,995 vehicles.
