Hyundai Motor labor and management reached a tentative agreement on wages and the collective bargaining agreement for 2025. Hyundai Motor labor and management produced the tentative agreement at the 20th collective bargaining negotiation held on the 9th in the Donghaeng Room of the Ulsan plant headquarters, attended by CEO Lee Dong-seock and union branch chief Moon Yong-mun and other labor-management negotiation representatives.
The labor and management formed a consensus to pool their collective strength to help the South Korean automobile industry overcome the crisis in the second half of the year amid an unprecedented "global tariff war." They agreed to respond swiftly to changes in the global automobile industry and to carry out changes and innovations to leap to a global top brand. To this end, they agreed to lay the groundwork to lead the future mobility industry through joint labor-management efforts related to the restructuring of domestic plants and by creating a foundation for attracting new businesses.
The labor and management also agreed to actively promote training software specialists at domestic production plants and production of core components for next-generation powertrains. Through this, they plan to secure both the quality competitiveness of software-defined vehicles (SDV, Software Defined Vehicle) and employment stability for workers.
In addition, the labor and management agreed to build an "H-safety experience center" to prevent serious accidents and industrial accidents. There, they will install immersive safety media experience facilities using the latest realistic media technologies and jointly work to establish a "safety-first culture."
Meanwhile, the labor and management agreed to support an expense of 40,000 won per employee for team-based teamwork activities in the local business sites' commercial districts of the municipalities where affiliated workplaces are located, by reforming existing sports festival systems to help revive the sluggish domestic economy, and decided to use about 2.9 billion won annually to promote coexistence with local commercial districts and economic revitalization.
In this agreement, they agreed to maintain the continued employment system currently in place for extended retirement (one year employment + one year employment after retirement) and to continue labor-management consultations in preparation for future legal amendments.
The labor and management also agreed to form a "labor-management joint task force (TFT)" to study major agendas such as reduction of working hours and improvement of the wage system and to continue related discussions. In particular, to actively respond to global demand fluctuations, they agreed to seek measures together to strengthen the future competitiveness of domestic production plants, including discussions on production models and volumes.
To resolve confusion over the scope of ordinary wages that arose after last year's Supreme Court full bench ruling, the labor and management agreed to include adjustments for wage system improvements and research efficiency improvement allowances in ordinary wages. Based on last year's business performance, they decided to pay wages and performance bonuses as compensation and encouragement for performance.
Key items include a base pay increase of 100,000 won (including step increase), management performance bonus 350% + 7,000,000 won, second-half crisis recovery incentive 100% + 1,500,000 won, global automobile awards commemorative incentive 5,000,000 won + 30 shares of stock, labor-management joint on-site safety culture establishment incentive 2,300,000 won, and traditional market gift certificates of 200,000 won, among others.
A Hyundai Motor official said, "Amid the interest and concern of customers, partners and various stakeholders looking at this year's negotiations, Hyundai Motor labor and management were able to reach a tentative agreement reflecting a will to survive and overcome the crisis in the future," and added, "We will work together even harder to produce the highest-quality cars to repay customers for their continuous support."
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