Hyundai Motor reaches tentative wage deal with labor union

Hyundai Motor reached a tentative wage deal with its labor union Monday, agreeing to decide whether to recalculate base wages to include bonuses through talks. The agreement was reached during their 23rd talks held in Ulsan factory, 119 days after they first launched talks on June 3.

Hyundai Motor decided to form a separate consultative group named "committee to enhance wage system including base wage" jointly with its union to finalize by March 31 next year on whether to include regular bonus in base wage as well as ways to improve the overall wage system.

The tentative agreement also contained details of "strategies for future development of management and labor" which is aimed to enhance overall productivity. The company will improve working conditions by, among others, building an air conditioning facility in factories that will value a combined 500 billion won (474 U.S. million dollars) in the next five years. Both management and labor will convene a quality seminar and also decided to develop environment-friendly vehicles.

Meanwhile, the shift work system will be changed from the current program of night time workers serving an extra hour to official working hours (e.g.nine hours) to one where they work normal eight hours. The system will be introduced as soon as possible.

The retirement age was extended to 60 years. Currently, employees can work until age 59 and works another year in contract terms.