Hyundai Motor shares gained 2.4% on Wednesday after the company reached a provisional four-year wage agreement with its main union, averting further industrial action.
The deal includes a 4.1% increase in base salaries and a performance bonus equivalent to 400% of the base salary, along with additional cash payments and extra bonuses for workers. The agreement follows a decade-long absence of full-scale strikes, with the union initiating its first general strike in 10 years last Friday after a series of partial walkouts beginning in July.
Workers had sought higher bonuses, an extension of the retirement age from 60 to 65 years, and protections against job losses from artificial intelligence and automation. Hyundai also faced demands to distribute more shares to employees, though the provisional terms of the agreement did not specify share allocations.
The provisional accord must still be ratified by union members before taking effect. Hyundai’s shares have outperformed the broader South Korean market in recent sessions, with the automaker’s stock rising alongside improving global automotive demand and easing supply chain pressures.
