Hyundai Makes Second Wage Offer

After costing Hyundai 10,900 units of vehicle production valued at 207 billion won ($196 million) in partial strikes in the last full week of September, unionized workers went on a 3-day holiday weekend, then returned to find their negotiating team was considering a new Hyundai offer.

Union sources say the Hyundai offer is good enough that their negotiators decided not to continue with strike action. They say the offer includes a 98,000-won ($84) monthly salary increase, a one-time bonus of 8.9 million won ($7,600) and a colossal bonus of 4.5 months’ salary.

However, there were many other details to iron out, foremost of which was Hyundai’s desire to implement a peak wage system next year. It would reduce worker wages 10% at age 58 through to their retirement year. Hyundai also wants to cap the retirement age at 60, but the union is pushing for retirement at age 65.

“Agreement was ultimately not reached, not even tentative,” a Hyundai spokesman tells WardsAuto. “Details are still under review.” He does not confirm the amounts of details of any offer.

Previously the management team had offered Hyundai a 79,000-won ($67) monthly raise, with bonuses of 2 million won ($1,700) and three months’ wages. It was rejected immediately.

The union’s original demands included a monthly salary hike of 159,900 won ($137) and bonuses equivalent to 30% of Hyundai’s 2014 net income.

Details of the management offer and the union’s amended demands were still being looked at on Oct. 5.

A good sign is that the production lines at all three Hyundai complexes in Asan, Ulsan and Jeonju have been on regular schedules since the workers returned from their holiday Sept. 29 – marking five days without a partial strike.