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Hyundai Averts Traditional Annual Labor Strike
Hyundai Motor Co. appears to have sidestepped a routine annual labor strike for the first time in eight years.
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Hyundai Motor Co. appears to have sidestepped its routine annual labor strike for the first time in eight years.
The South Korean carmaker’s union has tentatively agreed to accept a base wage increase of 1.7%, the smallest in a decade.
The package includes a one-time signing bonus of as much as 9 million won ($7,400), other payments worth six weeks of salary and 15 shares in the company. Union members will vote on the pact on Monday.
The proposed settlement comes as Hyundai seeks to bolster earnings after six years of shrinking results. The company’s net profit in the first half of 2019 climbed 27% to 2 trillion won ($1.7 billion), reversing a full-year loss of 1.5 trillion won ($1.3 billion) in 2018.
FT says the union agreed to the relatively modest compensation hike because of the uncertainties of a diplomatic spat between Korea and Japan, and the impact of the escalating trade war between the U.S. and China.
The union also has faced public backlash for its ubiquitous annual strikes that have ignored the company’s earnings decline.
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