On 19 December, labor and management at Hyundai Motor concluded a tentative wage and collective agreement, 8 months after the first negotiations in April 2017.
Major points in the agreement include: ▲monthly base pay to increase by KRW 58,000 (USD 54) ▲ performance-based bonus and incentive to be 300% of monthly base pay + KRW 2.8 million (USD 2,588) ▲KRW 200,000 (USD 185) worth of vouchers to be given to each worker (valid for purchasing products of SMEs). Labor and management also agreed on a special bonus called a ‘matching grant,’ where the company pays up to KRW 100,000 (USD 92) per worker for purchasing goods from SMEs. The matching grant is to support shared-growth between large enterprises and SMEs.
Moreover, the company agreed to directly hire 3,500 subcontracted workers gradually between 2018 and 2021. Added to the 6,000 subcontracted workers now directly employed by the company, this will make a total of 9,500 directly employed subcontracted workers by 2021.
Labor and management also agreed to reduce the part-time and subcontracted workforce by 50% until 2019. A labor-management consultation group for social responsibility will be established and a reserve fund of up to KRW 3 billion ($ 2.78 million) set up over 3 years.
Labor and management also concluded an agreement to prepare for the 4th Industrial Revolution. The Committee for Green Cars is now expanded to the Committee for Response to the 4th Industrial Revolution and Development of the Auto Industry. Labor and management will work together to enhance the infrastructure for eco-friendly cars such as by installing charging stations for electric cars in company parking lots.
A spokesperson for Hyundai Motor stated, “Labor and management was able to conclude an agreement in consideration of our current crisis. We will do our utmost to increase productivity and provide vehicles of the best quality to our customers.”