Hyundai Motor, South Korea’s largest automaker and a major global EV manufacturer, has reached a tentative agreement with its union that could bring an end to its first strike in seven years. The deal follows nearly three months of tense negotiations and comes at a time when the company faces growing challenges abroad, including rising U.S. tariffs on Korean-made cars and slowing global demand for electric vehicles.
The proposed settlement offers workers a $72 monthly base pay increase, a performance bonus equal to 450% of base salary, an additional $11,381 in cash, 30 shares of Hyundai stock, and $144 in traditional market gift certificates. It was struck during the 21st round of bargaining at Hyundai’s Ulsan plant, the company’s largest production hub.
Beyond immediate pay benefits, the agreement reflects Hyundai’s attempt to shore up long-term competitiveness. The company pledged to invest in training software specialists and to begin in-house production of critical components for next-generation powertrains. These initiatives are part of Hyundai’s broader strategy to lead in Software Defined Vehicles (SDVs), a field increasingly seen as the future of the auto industry.
Hyundai also promised measures aimed at workplace safety and community support. It will build a virtual reality-based immersive training center for employees and provide $28.80 per worker for team-building activities held in local shopping districts—an initiative expected to pump more than $2 million annually into the regional economy.
The deal broadens the definition of “ordinary wages,” which are used to calculate various bonuses, to include holiday stipends, vacation pay, and research productivity incentives. However, one major sticking point—retirement age—remains unresolved. The company will continue its current system of one-year post-retirement contracts but left the door open to changes depending on future legislation.
The tentative agreement will be put to a union vote on September 15. If approved, it will officially close this year’s collective bargaining process, marking a rare compromise in a labor landscape often defined by drawn-out disputes.
