Hyundai Motor Group freezes its supervisory employees’ wages in an effort to restrain costs and improve its constituent companies’ ability to cope with difficult business conditions expected throughout 2017.
Aimed primarily at automakers Hyundai and Kia, the freeze affects some 35,000 supervisors and managers in more than 50 affiliated companies.
A Hyundai Motor spokesman tells WardsAuto the freeze applies to the salaries of managers, deputy general managers and general managers.
The unnamed spokesman notes that as a manager his own salary has been frozen, but adds: “I don’t mind at all. My company being stable is a lot more important than getting a little more money.”
In a letter to affected employees, Hyundai Motor Group says, “The company is already taking emergency measures to overcome many difficulties, such as an economic downturn, slowing sales and a drop in operating profit, while company executives have voluntarily cut their own wages by 10%.”
Supervisory staff at Hyundai and Kia receive one raise annually, after unionized workers and management sign a new wage agreement.
The wage freeze generates no immediate financial benefits for the companies. However, it will block management salaries from rising after the next wage agreement is reached, which could be as early as midyear or as late as early 2018.Read More