Hyundai Union workers end strike with wage pact image

The workers in South Korea from Hyundai Motor Co. finally approved a tentative wage agreement, which is putting an end to the strikes taking place at the company’s biggest production base.

Hyundai has managed to reach an agreement with its workers in an attempt to repair seven consecutive quarters of decrease in sales. According to the union’s spokesman, Jang Chang Yeal, the workers at the Japanese company led by the union’s chief, Park You Ki, elected for the position at the end of November, approved a preliminary accord which includes a monthly raise in salaries by $73.

The agreement is only bringing good news to Hyundai as South Korea’s biggest carmaker looks like it is going to not fulfill its annual sales target for the first time since 2008 due to a decrease in new registrations. The company has decided that it will turn its luxury Genesis sedan into a premium brand to address a different target of customers and to increase profits. On the same topic, the Japanese carmaker hired former Lamborghini executive, Manfred Fitzgerald, who was the brand and design director at the Italian supercarmaker, to be the senior vice president at Hyundai Motor and to oversee the carmaker’s strategy at a global level regarding its luxury car brand Genesis.

Besides the salary increase, the wage pact also includes a one-time payout of around $3585 and bonuses equal to 400% of a worker’s salary.

The company and the union agreed to reduce the afternoon shift by one hour, which allows workers in South Korea to work eight hours per shift, according to a statement from the company. Since 2014, the lack of bonuses in the regular salaries has been a major issue between Hyundai’s management and the union.