Hyundai Motor, South Korea union agree 9% wage hike deal

The brand of Hyundai Motor Organization is pictured at the New York Global Car Show, in Manhattan, New York Metropolis, U.S., April 13, 2022. REUTERS/Andrew Kelly/

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SEOUL, July 20 (Reuters) – Hyundai Motor Co (005380.KS) and a union representing its South Korea workforce have sealed a wage deal that will boost yearly spend by about 9% just days right after the automaker committed to constructing its 1st new Korean car or truck plant in almost 30 a long time.

The union, just one of the most significant in South Korea with more than 46,000 users, explained late on Tuesday that a whole of 62% of its voting members permitted the tentative agreement attained last week, even though 38% turned down it. go through a lot more

The accord, achieved after 15 rounds of talks that commenced in May, arrives soon after Hyundai announced a system to create a devoted electric powered motor vehicle (EV) factory in South Korea. read more

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“With the most recent arrangement, we hope the corporation and the union will be capable to collaborate intently and share vision to direct the upcoming mobility field,” Hyundai Motor explained in a assertion to Reuters on Wednesday.

The unionised employees had voted earlier this month for a feasible strike around calls for for larger wages amid anger that management was prioritising abroad financial commitment. Hyundai Motor staff last went on strike in 2018. go through a lot more

The union had urged Hyundai to make investments in the country to support new company, like urban air mobility, reason-developed automobiles and electric powered car or truck-linked auto sections manufacturing. A person of its demands was the creating of an EV-linked production facility.

In May, Hyundai Motor Group, which involves Hyundai Motor and Kia Corp (000270.KS), said it would make investments 63 trillion won ($48 billion) in South Korea through 2025.

Individually, the South Korean car team reported it would make investments extra than $10 billion in the United States by 2025, which contains its strategies to devote $5.5 billion in Ga to build EV and battery services. [nL2N2XE00O

Shares in Hyundai Motor were being up 1.3% in morning trading, as opposed to a 1.2% rise in the KOSPI (.KS11) benchmark.

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Reporting by Heekyong Yang Enhancing by Catherine Evans, Jonathan Oatis, Susan Fenton and Kenneth Maxwell

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