SEOUL, Dec. 29 (Korea Bizwire) – Unionized workers at Hyundai Motor Co., South Korea’s leading carmaker, voted on Tuesday in favor of a tentative wage deal reached with the management that promises a pay raise, bonuses and other benefits.
In a yes-or-no vote, 25,172 workers, or 59.72 percent of votes cast, supported the deal, wrapping up about six months of talks complicated by several labor strikes.
Leaders of the labor union and management earlier agreed to raise the base salary by 4.2 percent, or 85,000 won (US$72.7), along with a 300 percent bonus plus 2 million won worth of incentives.
Regarding the controversial wage peak system, both sides agreed to hold more talks next year on whether or not to expand its implementation.
After they reached a deal in the 2014 talks, Hyundai Motor has been implementing the system under which workers have to accept a 10 percent cut in their salaries at the age of 60 in return for staying on the payroll.
The approval comes after unionized workers at Hyundai Motor, known for their hawkish stance on labor issues, held several partial strikes during the wage talks. The latest one was held in mid-December.
Hyundai Motor has been faced with one of the toughest business conditions throughout this year due to a slump in demand in China and other emerging markets.
Car sales, including those of its smaller affiliate Kia Motors Corp., are expected to fall short of their annual target this year for the first time in years.
Shares of Hyundai Motor were trading at 148,500 won as of 10:00 a.m., down 1.66 percent from a day earlier.