(Reuters) – Hyundai Motor’s South Korean union said on Tuesday it reached a tentative agreement with the company’s management, averting further production losses after its lengthiest walkout in a decade.
Hyundai Motor shares were flat, while the broader market was down 2%. The labour deal is subject to approval by union members on Monday.
The union staged its first full strike in a decade on Friday, following a series of partial stoppages since July, demanding higher bonuses, an increase in the retirement age and job protections against artificial intelligence and automation.
The tentative agreement includes a base salary increase of 4.1% plus a performance bonus equivalent to 400% of base pay and additional payouts in cash and bonuses.
The retirement age will be extended from the current 60 upon amendment of a relevant law.
From next year until 2028, 500 new technical workers will be hired.
Regarding union demands on job security related to AI, the two sides agreed to discuss matters related to employment when it comes to rolling out new businesses, according to the agreement seen by Reuters.
Hyundai, which owns humanoid robot maker Boston Dynamics, has said it plans to deploy humanoid robots at its U.S. plant in Georgia from 2028, with the aim of expanding their use across its production sites.
“Both parties recognize that advanced technologies such as physical AI and robotics are essential part of the future of mobility,” Hyundai Motor said in a statement.
($1 = 1,382.8900 won)
Reporting by Akanksha Khushi in Bengaluru, Hyunjoo Jin and Heejin Kim and Heekyong Yang in Seoul; Editing by Sharon Singleton and Sonali Paul
