# Hyundai Motor labor deal clears path to production recovery > Source: > Published: 2026-08-25 05:01:48+00:00 Tentative agreement covers pay raises, new hiring and AI transition after strikes disrupted production of 55,200 vehicles Hyundai 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. The 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. The 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. The 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. Hyundai 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. Regarding 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. The 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. This 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. Over 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. The two sides also reached an agreement on one of the key issues in the negotiations: job security related to artificial intelligence and robots. The 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. The 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. Hyundai Motor said it would now focus on recovering from the production disruptions and ramping up operations in the second half of the year. “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.” sahn@heraldcorp.com