Hyundai Motor reached a tentative wage agreement Tuesday, easing a major risk to new vehicle production in South Korea. The deal helps the company focus on flagship models such as the Avante, Grandeur and Tucson, after months of labor disputes and strikes. Hyundai said it will now prioritize second-half production and new launches while also addressing job-security concerns tied to automation and robotics.
Members of the Korean Metal Workers’ Union’s auto industry division chant slogans during a joint strike rally in front of Hyundai Motor’s headquarters in Seoul, Friday, as the automaker’s union staged a full-day strike amid stalled wage negotiations. Yonhap
Hyundai Motor’s belated wage deal has removed a major risk to the carmaker’s production of new strategic vehicles, including the Avante, Grandeur and Tucson — three flagship models that will drive the carmaker’s earnings in the latter half of this year.
According to the carmaker, Hyundai Motor’s management and its union reached a tentative wage agreement Tuesday, ending months of labor disputes that had disrupted vehicle production and increased financial pressure on workers and parts suppliers.
The carmaker faced mounting production risks since July, when its union started strikes. Hyundai Motor’s lost sales are estimated to reach more than 1 trillion won ($723.5 million) due to the strike.
