The Hyundai Motor Company has finally reached a tentative agreement with its labor union over wages and benefits, 101 days after the 2013 meeting between labor and management. On September 6, Korea's largest automaker normalized operations at 7 am, as the first group started their work.
The working hours of daytime groups 1 and 2 were reduced by two hours so that they can participate in a presentation about the tentative wage deal hosted by the union’s executive. But the reduced hours do not mean strikes.
Originally, union members intended to stage a partial 6-hour strike, and to come to the corporate headquarters on September 6. However, they abandoned the plan due to the September 5 tentative agreement.
The agreement includes a 5.14% wage increase worth 97,000 won (US$89.14), a 350% bonus increase, payment of 5 million won (US$4,595), 3 million won incentives (US$2,760) for achieving business goals, and full payment of the usual wage in the name of a special agreement for the new daytime double-shift system.
It was decided that the key issues in the negotiation, the withdrawal of union’s executive's prosecution and complaint, and compensation for damages, will be discussed later. And the retirement age will continue to be set at 60.