Hyundai, Labor Union Reach Temporary Wage Deal

Hyundai, Labor Union Reach Temporary Wage Deal

Strikes had cost company $1.4 billion.

After a series of partial strikes in South Korea that have cost Hyundai Motor (IW 1000/54) $1.4 billion in lost sales,  the company and labor union representatives reached a temporary wage agreement on Thursday.

The deal, to be put into practice from March, will see the introduction of a two-shift daytime work system, with staff to be finished by midnight at the latest, as well as an increase of 98,000 won (US$87) in basic pay per month.

The union said it had also agreed on performance-based pay equivalent to five months of salary and a cash bonus of 9.6 million won per person.

The agreement will be put to a vote by Hyundai's 44,000-strong union on Monday.

The union has staged strikes of up to four hours since stoppages began on July 13, costing the company about 1.6 trillion won (US$1.4 billion).

Hyundai's affiliate Kia Motors has seen similar industrial action. The two companies together form the world's fifth largest automaker.

Hyundai has said the prolonged dispute could also hit sales in the United States because inventories stood at record-low levels.

Total exports of Hyundai and Kia vehicles from South Korea fell 23% to 120,493 vehicles in July from 156,200 the previous month.

Copyright Agence France-Presse, 2012

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