{"slug": "hyundai-motor-labor-deal-clears-path-to-production-recovery", "title": "Hyundai Motor labor deal clears path to production recovery", "summary": "Hyundai Motor and its labor union reached a tentative wage agreement on Tuesday, ending a dispute that disrupted production of about 55,200 vehicles and caused sales losses exceeding 2.3 trillion won. The deal includes a 100,000 won ($72.33) monthly base pay raise, a performance bonus of 400 percent of monthly salary plus 12.7 million won, 15 Hyundai Motor shares, 500,000 won in welfare points, and hiring of 500 new production workers. Union members will vote on the package Aug. 31.", "body_md": "Tentative agreement covers pay raises, new hiring and AI transition after strikes disrupted production of 55,200 vehicles\n\nHyundai Motor and its labor union reached a tentative wage agreement Tuesday, more than three months after negotiations began, potentially ending a protracted labor dispute that disrupted production.\n\nThe two sides struck the deal during their 17th round of negotiations at Hyundai Motor’s Ulsan plant. Representatives from management and the union engaged in talks that began Monday and continued overnight.\n\nThe two sides agreed to raise monthly base pay by 100,000 won ($72.33) and provide a performance bonus of 400 percent of monthly salary plus an additional payment of 12.7 million won. Workers will also receive 15 Hyundai Motor shares and 500,000 won in welfare points, according to Hyundai Motor in a statement.\n\nThe package represents a middle ground between the company’s earlier offer and the union’s initial demands. Hyundai Motor had previously proposed an 89,000 won increase in base pay and a performance bonus of 350 percent plus 10 million won. The union had sought a 149,600 won base-pay increase and a bonus equivalent to 30 percent of the company’s net profit last year.\n\nHyundai Motor said it will also hire 500 new production workers, with 200 to be recruited in the second half of 2027 and another 300 in 2028.\n\nRegarding the contentious issue of extending the retirement age, the two sides agreed to raise it from 60 to 65 if the government passes related legislation on a nationwide hike.\n\nThe tentative agreement must still win approval from union members. The union is set to vote on the package Aug. 31. If approved, the deal would formally conclude this year’s wage negotiations 111 days after talks began on May 6.\n\nThis year's negotiations were marked by repeated breakdowns and a series of strikes as the two sides failed to narrow differences. The union staged partial walkouts lasting between two and six hours before escalating to an eight-hour full-scale strike on Friday, marking its first such walkout in a decade.\n\nOver the course of the dispute, the union accumulated a combined 60 hours of strike this year, resulting in about 120 hours of production halt across two shifts. Industry estimates based on average vehicle selling prices suggest the stoppages disrupted production of about 55,200 vehicles, resulting in sales losses exceeding 2.3 trillion won.\n\nThe two sides also reached an agreement on one of the key issues in the negotiations: job security related to artificial intelligence and robots.\n\nThe two sides agreed that the introduction of physical AI and robotics is essential to the company’s long-term competitiveness and survival. They agreed to transparently share developments involving new businesses and technologies and work together to manage the transition toward next-generation manufacturing, according to Hyundai.\n\nThe union has voiced concerns over Hyundai's plan to deploy Atla humanoid robots — made by its US subsidiary Boston Dynamics — at its US manufacturing plant in Georgia from 2028, with a broader rollout to other facilities planned afterward.\n\nHyundai Motor said it would now focus on recovering from the production disruptions and ramping up operations in the second half of the year.\n\n“We apologize for causing concern to our shareholders, customers, parts suppliers and other stakeholders due to the prolonged negotiations and strikes,” a Hyundai Motor official said. “We will devote all our efforts to production in the second half and the production of new models.”\n\nsahn@heraldcorp.com", "url": "https://wpnews.pro/news/hyundai-motor-labor-deal-clears-path-to-production-recovery", "canonical_source": "https://www.koreaherald.com/article/10851482", "published_at": "2026-08-25 05:01:48+00:00", "updated_at": "2026-08-25 05:16:08.410997+00:00", "lang": "en", "topics": ["artificial-intelligence", "robotics"], "entities": ["Hyundai Motor", "Boston Dynamics", "Atla"], "alternates": {"html": "https://wpnews.pro/news/hyundai-motor-labor-deal-clears-path-to-production-recovery", "markdown": "https://wpnews.pro/news/hyundai-motor-labor-deal-clears-path-to-production-recovery.md", "text": "https://wpnews.pro/news/hyundai-motor-labor-deal-clears-path-to-production-recovery.txt", "jsonld": "https://wpnews.pro/news/hyundai-motor-labor-deal-clears-path-to-production-recovery.jsonld"}}