Hyundai Motor shares advanced 2.4% on Wednesday after the South Korean automaker reached a preliminary labor agreement with its union, averting a full-scale work stoppage.
The tentative deal follows the union’s first full strike in a decade, which began on Friday after several partial walkouts initiated in July. The agreement addresses key worker demands including protections against job losses from artificial intelligence and automation, higher retirement provisions, and increased employee share allocations.
Under the preliminary terms, the company will implement a 4.1% base salary increase alongside a performance bonus equivalent to 400% of base pay. Additional compensation will be disbursed in cash and bonuses, according to the announcement.
The union had sought a retirement age increase to 65 from the current 60, alongside higher bonuses and expanded share awards for employees. The tentative accord now awaits formal ratification by union members.
