Hyundai Motor reaches deal with workers’ union, avoiding strike over wage demands

Hyundai Motor, the South Korean auto giant, has successfully reached a deal with its workers’ union to avert a potential strike at its facilities. The company agreed to meet the wage hike demands put forth by its workers, preventing a situation similar to the labor dispute currently faced by the big three carmakers in the United States.

The deadlock between Hyundai and its workers’ union was resolved after the company agreed to a 12% increase in the annual wage of its employees. This agreement ensures that a strike, which could have had a significant impact on Hyundai’s operations, has been avoided.

Previously, the Hyundai and Kia workers’ union had threatened a major strike to demand higher pay packages and an increase in the retirement age. The union, which consists of approximately 45,000 members, had received permission from the National Labor Relations Commission to proceed with the strike. However, after voting on the matter, the majority of union members approved the tentative agreement with the carmaker, bringing an end to the wage-related conflict.

This resolution comes as a relief for Hyundai, as it would have been the first wage-related conflict at the company’s South Korean facilities in five years. The last strike occurred in 2018, when workers at Hyundai Motor and Kia protested for better working conditions. The decision to avoid a strike aligns with the company’s efforts to maintain stability and minimize disruptions to its production.

In the United States, a similar labor dispute is taking place, with the United Auto Workers (UAW) staging a strike against the big three carmakers – Ford Motor, General Motors, and Stellantis. The UAW’s demands for fair pay and a share of the companies’ profits have led to ongoing strike actions. However, unlike in the US, Hyundai and its workers’ union were able to reach an agreement successfully.

Overall, by addressing the wage hike demands of its workers, Hyundai Motor has managed to prevent a strike and maintain the smooth functioning of its facilities in South Korea.

– HT Auto Desk