Hyundai Motor's labor and management, tentative agreement on wage negotiations without dispute for 4 years in a row

Hyundai Motor's labor and management prepared a tentative agreement for this year's wage negotiations, including a 98,000 won increase in basic wage.

According to Hyundai Motor's labor and management on the 13th, the two sides reached a tentative agreement in the 16th round of negotiations held in the companion room of the main building of the Ulsan plant the day before.

The provisional agreement includes basic salary of 98,000 won (including salary increase), management performance bonus of 200% + 4 million won, 100% incentive for achieving goals in the second half of the year, 1.5 million won of incentive for quality improvement, 20 stocks of special incentive to respond to future automobile industry changes, conventional market gift certificate 25 million, etc.

The wage increase and the size of the bonus were determined comprehensively in consideration of internal and external risk factors such as business performance, a prolonged supply shortage of semiconductors, and geopolitical threats such as the Russo-Wu crisis. The union's demands for an extension of the retirement age, reinstatement of laid-off workers, and a wage peak system were not accepted.

With this provisional agreement, Hyundai Motor's labor and management set a record for the first time in history for four years in a row without a dispute. The union plans to hold a vote in favor of or against all union members on the 19th to ask whether or not to accept the provisional agreement. If the pros and cons vote is approved, the labor and management will finalize the wage negotiations this year.

In this year's negotiations, a 'special agreement on future investment in domestic factories' was prepared to respond to the transition period of future cars, to secure a future vision for domestic factories and to secure employment stability.

In order to respond to the rapid increase in global electric vehicle market demand, the agreement will begin construction of the first electric vehicle-only plant in Korea next year, and include the phased reconstruction of an existing old production line in connection with volume reorganization, such as the transfer of vehicle types to a new plant.

The new plant will be built exclusively for electric vehicles, and the target for mass production is 2025. It is the first time in 29 years that Hyundai Motor Company will build a new domestic plant since the 1996 Asan plant. The existing aging production line will be reconstructed in stages to transform it into a world-class futuristic factory.

Labor and management also agreed to hire new production and technical positions. It is the first time in 10 years since 2013 that Hyundai Motor Company hired new production and technical positions. Hyundai Motor will start hiring in the first half of next year, and the size of the hiring will be decided by the labor and management by November.

In order to preemptively respond to the rapidly changing business environment and risks of the automobile industry, labor and management formed the 'Labor-Management Consultative Group to respond to internal and external risks in domestic factories' attended by labor and management representatives, and held a regular meeting once a quarter to discuss future car industry trends, production and quality ·We plan to share safety indicators and discuss countermeasures.