Hyundai Motor shares advanced 2.4% on Wednesday after the automaker reached a tentative agreement with its largest labor union, averting an extended work stoppage.
The union had initiated its first full strike in a decade last Friday, following multiple partial work stoppages that began in July. The tentative deal addresses key union demands, including protections against job losses from artificial intelligence and automation, as well as increased employee share allocations.
Under the preliminary terms, workers will receive a 4.1% increase in base salaries alongside a performance bonus equivalent to 400% of base pay. Additional compensation will be distributed in cash and supplementary bonuses. The agreement also includes a proposal to raise the retirement age from 60 to 65 years, a longstanding demand from the union.
The stock gain reflects investor relief after the avoided disruption, which had threatened production at Hyundai’s Ulsan plant, one of the world’s largest automobile manufacturing facilities.
