© Reuters. FILE PHOTO: The emblem of Hyundai Motor Company is pictured on the New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Andrew Kelly/File Photo
By Heekyong Yang
SEOUL (Reuters) -Hyundai Motor Co and a union representing its South Korean workforce on Monday sealed a wage deal that may enhance annual pay by about 12%, avoiding a strike and manufacturing losses on the firm’s largest manufacturing base.
The union, one of many largest in South Korea with greater than 44,000 members, mentioned on Monday {that a} complete of 58.8% of its voting members had accredited the tentative settlement reached final week, whereas 41.1% rejected it.
Unionised staff voted final month for a potential strike over calls for for increased wages, a efficiency bonus and a rise within the necessary retirement age to 64 from 60.
The union demand to extend the retirement age – which might have allowed staff to remain of their jobs, lowering reliance on the pension system, for longer – was not accepted.
Workers at Hyundai Motor (OTC:), the No.3 world automaker by gross sales with its affiliate Kia Corp, final went on strike in 2018.
Unionised staff at Hyundai in South Korea held a four-hour strike for someday in July in help of a basic strike, nevertheless it was not associated to the union’s wage negotiations with the administration.
The United Auto Workers (UAW) final week went on strike in opposition to all three Detroit automakers – General Motors Co (NYSE:), Ford Motor (NYSE:) Co and Stellantis (NYSE:) – directly for the primary time.
Hyundai Motor Group, which homes Hyundai Motor, Kia, luxurious model Genesis, operates U.S. manufacturing websites in Alabama and Georgia. The auto group presently is constructing electrical car and battery plant in Georgia.
“The labour risks have been there all along, especially in the auto sector, but this UAW strike is unprecedented. If the UAW manages to win major pay raises, it could make workers at foreign automakers, like Hyundai Motor and Kia, that operate non-union plants in the United States, think about the UAW representation,” mentioned Lee Jae-il, an analyst at Eugene Investment & Securities.
