The workers and management of Hyundai Motors on July 20 agreed to a wage settlement for this year, marking the quickest deal in eight years. Under this agreement, the basic wage will increase by 45,000 won (US$40), with extra bonuses, according to the company. It also included ways to adjust work shifts to reduce working hours.
According to reports from Korea’s leading news agency, Yonhap, yesterday, the company and the union also agreed to make concerted efforts to improve productivity and create a 50 billion-won fund to support subcontractor firms.
A company official said, "We will strive to increase productivity, provide cars in time and maintain high quality in the latter half of the year to meet consumer needs.”
This is the first time in eight years that the two parties have reached an agreement before the summer vacation starts. They have been holding talks on wage increases since May.