Hyundai Motor’s labor union reached a tentative wage settlement with management on Tuesday, ending a strike at the automaker’s largest factory that would have suspended production of about 1.5 million vehicles annually.
The agreement includes a 100,000 won ($72.31) monthly base salary increase and the addition of 500 technical workers between 2027 and 2028. Hyundai’s Ulsan plant, which accounts for roughly a quarter of the company’s total output, had been targeted for a shutdown had negotiations failed. The tentative deal also incorporates performance bonuses and welfare points, according to a statement from the union.
The walkout marked Hyundai Motor’s first full-scale strike in a decade, initiated Friday after wage talks stalled. The union had previously sought to set aside 30% of net income for bonuses and raised concerns over job security amid automation and AI deployment in factories. Kim Jin-wook, head of external relations for the union, highlighted the presence of robots in production lines and reiterated demands for increased hiring to counter workforce reductions.
Hyundai, ranked as the world’s third-largest automaker and a developer of humanoid robots, had faced pressure to address labor grievances while maintaining operational continuity. The tentative agreement now awaits ratification by union members.
