■ End of the 6th consecutive wage negotiation without a strike
Agreement reached on temporary basis for negotiating labor conditions at existing workplaces
Joint efforts made to contribute to resolving social issues such as low birth rates, youth unemployment, and support for subcontractors
Basic wages to increase by 4.65%… To be put to a vote on the 12th,
Hyundai Motor Company’s labor and management exchanging greetings at a wage negotiation meeting held in May at the Ulsan plant. Photo provided by Hyundai Motor Company,
, ‘[Seoul Economy] ‘,
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, ‘Hyundai Motor Company’s labor and management have agreed to establish a joint fund to support childcare for low-income families and hire an additional 800 technical workers by 2026. It is meaningful in that Korea’s leading company, beyond the traditional practice of negotiating labor conditions, has come together to address social issues such as low birth rates and youth unemployment.’,
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, ‘According to industry sources on the 9th, ‘, Hyundai Motor(005380), ‘ and its labor union reached a temporary agreement on the ‘strengthening of social roles’ at the 12th wage negotiations held at the Ulsan plant the night before.’,
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, ‘In order to address the issue of low birth rates emerging as a social issue, Hyundai Motor and its labor union agreed to establish a ‘Corporate Social Responsibility Fund’ of 1.5 billion KRW. This is separate from the social contribution funds that were agreed upon in the collective agreement to contribute 6 billion KRW annually.’,
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, ‘A portion of the performance-based bonus paid this year will be deducted by 10,000 KRW per employee to contribute to the fund, and the company will contribute 1.5 billion KRW including the employee contribution. The special social contribution fund that has been set up will be used to support childcare services to reduce the burden on low-income families. To address youth unemployment, the company plans to hire additional technical workers. In addition to the 300 agreed upon in last year’s agreement, they will hire 500 more in 2025 and another 300 in 2026. This amounts to hiring a total of 1,100 technical employees over two years from 2025 to 2026.’,
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, ‘To promote mutual growth with partner companies, the Group will operate a 100 billion KRW sized shared fund and provide support for the establishment of smart factories with an annual 5 billion KRW funding. They have also decided to operate a 5 billion KRW financial support program to assist partner companies in purchasing greenhouse gas reduction facilities.’,
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, ‘To discuss social agreements that require negotiations between labor and management such as extending retirement age and reducing working hours, a Task Force Team (TFT) will be formed by labor and management to discuss these matters. In return, they extended the re-employment period for skilled workers who can work an additional year after reaching the retirement age (age 60) by 2 years, achieving a practical retirement age extension effect.’,
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, ‘The labor and management also reached a temporary agreement on the wage negotiation proposal containing an increase in basic wages of 11,200 KRW (4.65%). In addition to the basic wage increase, they included bonuses such as △Management Performance Bonus of 400% + 10 million KRW △Special Encouragement Bonus for achieving the highest management performance for two consecutive years of 100% and 280 thousand KRW △Market Voucher of 200 thousand KRW △Special agreement shares related to wage negotiation settlement of 5 shares, etc. They also made a special agreement to give a Quality Improvement Encouragement Bonus of 5 million KRW + 20 shares of company stock expected to be granted when achieving ‘1 million cumulative sales globally’ around September.’,
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, ‘If the temporary agreement is passed through a yes-no vote of the union members on the 12th, Hyundai Motor will achieve a 6th consecutive strike-free settlement.’,
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