Hyundai union approves wage deal

Hyundai union approves wage deal

Workers at Hyundai Motor have voted in favour of a wage deal, ending a series of strikes at the South Korean firm.

The firm had offered to raise basic pay by 5%, pay a one-time bonus of 5m won ($4,615; £2930) plus three-and-a-half months of salary per worker.

The walkouts have cost Hyundai 1tn won ($930m) in lost production.

South Korea’s car industry has been plagued by industrial action. Hyundai has suffered a strike in 22 years of its 26 year history.

The latest walkout, which stared in August, resulted in 50,000 fewer vehicles being produced.

Earlier this year, union workers refused extra work on 13 weekends as they demanded higher wages for those shifts.

While that was not a sanctioned strike, it still cost the company 1.7tn won in lost production.

Last year, workers at Hyundai and its affiliate Kia Motors walked out for four months resulting in production losses worth $1.5bn.

The strikes have come at a time when Hyundai is facing increased competition from resurgent Japanese carmakers – who are benefiting from a weaker yen – as well as the continued recovery of US car manufacturers.