Hyundai Motor’s South Korea union approves wage deal

© Reuters. FILE PHOTO: The logo of Hyundai Motor Company is pictured at the New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Andrew Kelly/File Photo

By Heekyong Yang

SEOUL (Reuters) -Hyundai Motor Co and a union representing its South Korean workforce on Monday sealed a wage deal that will boost annual pay by about 12%, avoiding a strike and production losses at the company’s biggest manufacturing base.

The union, one of the biggest in South Korea with more than 44,000 members, said on Monday that a total of 58.81% of its voting members had approved the tentative agreement reached last week.

Unionised workers voted last month for a possible strike over demands for higher wages, a performance bonus and an increase to the mandatory retirement age to 64 from 60.

The union demand to increase the retirement age – which would have allowed workers to stay in their jobs, reducing reliance on the pension system, for longer – was not accepted.

Workers at Hyundai Motor (OTC:), the No.3 global automaker by sales with its affiliate Kia Corp, last went on strike in 2018.

Unionised workers at Hyundai in South Korea held a four-hour strike for one day in July in support of a general strike, but it was not related to the union’s wage negotiations with the management.