Hyundai Motor Co.’s management and union on Monday tentatively settled collective bargaining terms for this year without labor disputes, raising hope that the auto maker would finish the year without the union’s notorious drawn-out protests and strikes for two straight years.

The two parties provisionally agreed on a freeze in the base salary, a 150 percent rise in performance-based bonus compensation, 1.2 million won ($1,031.29) special COVID-19 allowance, 10 Hyundai Motor company stocks and 200,000 won worth gift coupons, according to the company on Monday.

The management and the union reached the latest agreement on wage terms without disputes after they shared concerns over the ongoing market challenges from the virus pandemic and protracted global economic slowdown.

If a majority of the union members vote to accept the terms on Friday, the management and union can achieve the second strike-free year in a row.

It also would be the third time they have agreed on a wage freeze since the 1998 financial crisis when the country was under international bailout following a liquidity crisis and the 2009 global financial meltdown.

Hyundai Motor shares fell 2.97 percent to close Tuesday at 179,500 won in Seoul.

The management and union also vowed efforts to bring co-development and have cooperative relationship in the face of multiple challenges at home and abroad. They agreed to join forces to expand its cooperation programs for parts suppliers and join Ulsan City Government’s 50-billion won support for regional parts makers.

The management and union also agreed to enhance the quality of manufacturing vehicles by forming a quality assurance team at each factory, strengthening related activities plus 200 billion won investment for next five years and operating fab quality follow-up system.

The vote of some-50,000 union members will take place on Friday.

By Seo Dae-hyun, Lee Jong-hyuk and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]