Hyundai Motor Co.’s management and union on Tuesday tentatively settled collective bargaining terms for this year, raising hopes that the carmaker could finish the year without a labor dispute and strikes for the third consecutive year.

The two parties provisionally agreed on a 75,000 won ($65.31) increase in the base salary, 200 percent of base salary and normal wage plus 3.5 million won for performance-based bonus compensation, 2.3 million won of incentives for quality enhancement effort, five Hyundai Motor stocks of incentives for future competitiveness, as well as 200,000 points for day-time shifts for two consecutive days and 100,000 won in gift coupons.

To ensure job security, they signed a special agreement to respond to industrial shift to future mobility with a focus on the roles of factories and R&D center at home and mutual efforts.

The two plan to go all out to improve the profitability of conventional engine vehicles and achieve timely production based on market demand with an aim to better respond to mobility shift to electric vehicles and new business opportunities with continuous investment in domestic plants.

The management rejected the demand of extension of retirement age and reinstatement of dismissed workers.

The management and union agreed to avoid going into labor dispute in the face of multiple challenges at home and abroad.

If the labor union members vote to accept the terms next week, they can achieve the third strike-free year for the country’s largest carmaker whose production has been disrupted due to global chip shortages amid protracted Covid-19 situation.

“Based on cooperative relationship between the management and union, the company will address the challenges of automobile industry and make a leap towards a global top-tier by preventing workplace accidents and enhancing quality competitiveness,” said a Hyundai Motor official.

Hyundai Motor shares closed 0.44 percent higher at 228,000 won in Seoul trading on Wednesday.

By Pulse

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