Hyundai Motor Group will implement a wage peak system throughout all its affiliates starting next year. With the reduced labor costs, the Group will create 1,000 or more jobs per year for youths.
The Group stated that a wage peak system will be introduced for all 150,000 workers in 41 affiliates from 2016, as its response to social expectations for more youth employment and employment security.
Hyundai Motor Group will extend retirement age at all of its affiliates to 60. Currently, the affiliates have different retirement ages: 58 at Hyundai Mobis, 57 at Hyundai Steel and Hyundai Engineering & Construction for example. Hyundai Motor Group is also planning to assist employees after retirement to maintain financial stability through outplacement/startup business programs, self-improvement programs, and retirement planning.
A wage peak system will be introduced to all affiliates along with extension of the retirement age. The Group will discuss scope and application of the wage peak system with worker representatives (trade unions etc.) in each affiliate. The Group will also request the active cooperation of those worker representatives.
Through the wage peak system, the Group will reduce the costs associated with extension of the retirement age, allowing it to hire more youth. The Group expects to create 1,000 or more new jobs every year.