Hyundai Motor union and management reach tentative wage deal after strikes

The management and labor union of Hyundai Motor Co. tentatively reached a wage agreement early Tuesday following a series of strikes that caused production disruptions. The two sides reached an understanding at the 17th round of talks, agreeing to raise monthly base pay by 100,000 won ($72.20), provide a performance bonus of more than 400 percent of monthly salary and pay an additional payment of 12.5 million won, the automaker said in a release. The two sides also agreed to extend the retirement age from the current 60 to 65 if related laws and regulations are revised. If the agreement is approved in a union vote scheduled for Aug. 31, this year's wage negotiations at South Korea's largest automaker will be concluded. The 400,000-member union staged a combined 60 hours of strikes this year, resulting in about 120 hours of production disruptions across two shifts. The labor action included a full-day strike Friday, the union's first such walkout in 10 years. The strikes are estimated to have caused cumulative production losses of around 55,200 vehicles, with lost sales exceeding 2.3 trill

The deal includes a US$72.31 monthly pay rise, a 400% performance bonus and an extension of the retirement age.