South Korea's Automakers Near End of Wage Talks as Hyundai Vote Looms

  • Four automakers finalized wage agreements, leaving Hyundai Motor’s union vote on the 31st.
  • Kia’s settlement passed with 64.1% support for wages and 63.1% for collective bargaining terms.
  • Hyundai Motor estimates put strike-related revenue losses at approximately 2.3 trillion won.

Four of South Korea’s five domestic automakers have completed this year’s wage and collective bargaining negotiations, leaving Hyundai Motor’s union ratification vote on the 31st as the remaining step. Kia members approved the wage package by 64.1% and the collective bargaining terms by 63.1%, with approximately 91% participation, extending the company’s strike-free run to six consecutive years since 2021. Kia’s settlement includes a 100,000 won base-pay increase, performance bonuses of 300% plus 4 million won, quality-improvement incentives of 100% plus 4.7 million won, and 47 company shares. Hyundai Motor reached a tentative agreement after partial strikes and its first full-scale strike in a decade, with estimated revenue losses of 2.3 trillion won. The agreement includes a 100,000 won base-pay increase, performance bonuses of 400% plus 12.7 million won, 15 employee shares and 500,000 won in Hash Points. With labor uncertainty receding, automakers are turning to second-half sales, new-model deliveries, export demand and plant utilization amid electric-vehicle demand shifts, global price competition and U.S.-related trade uncertainty.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.