Hyundai Motor, union reach tentative wage agreement

Hyundai Motor and its South Korean union reached a tentative wage agreement on Tuesday, August 25, 2026, ending months of labor disputes that had disrupted production and raised financial concerns for the automaker. The deal, which averts further strikes, comes after a rare full-day work stoppage last week and a series of partial stoppages that began in July. The agreement is expected to allow Hyundai to resume normal operations and focus on producing key vehicle models for the second half of the year.

The tentative agreement includes a monthly base pay increase of 100,000 won and a performance bonus equivalent to 400 percent of base pay. Workers will also receive an additional bonus of 12.7 million won, 15 shares of Hyundai Motor stock, and 500,000 won in welfare points. The union had initially demanded that the company set aside 30 percent of net income for bonuses, but the final terms represent a compromise. Union members are scheduled to vote on the proposal on August 31.

A central issue in the negotiations was the introduction of new technologies, including artificial intelligence and robotics. The union expressed concerns about the potential impact of automation on jobs,...