Korea’s Hyundai Workers Ratify New Contract

Workers at Hyundai Motor Co.'s factories in South Korea have approved the tentative contract that their union reached with the company late last week.

The vote ends a series of ministrikes by hourly employees since Aug. 20. Hyundai estimates the job actions cost it 1 trillion won ($913 million) in lost production of about 50,200 vehicles.

The new one-year pact will boost base wages for each of the company's 46,000 unionized workers in the country by 5.1%, or about 97,000 won ($89) per month. Those employees also will receive bonuses of about 28.8 million won ($26,300) per person, the union calculates.

The contract dispute was Hyundai's second costly labor action this year. This spring workers refused to work overtime on 13 weekends, seeking higher pay for those shifts. The company said lost output in that period cost it 1.7 million won ($1.6 million).

Hyundai hourly employees in Korea have gone on strike in 22 of the past 26 years. The company usually has been able to recoup lost output after an accord is ratified.

Hyundai affiliate Kia Motors Corp. is still engaged in labor talks.