Hyundai Motor, Union Reach Wage Deal to End Walkouts

By Kwanwoo Jun

Hyundai Motor has reached a tentative wage agreement with its labor union, ending months of on-and-off walkouts that have disrupted production.

The deal was reached on Tuesday, following the first full-day labor strike in a decade on Friday as unionized workers pressed their demands, the Korean car maker said.

The preliminary agreement is subject to approval by union members in a vote next Monday, the company said.

Hyundai Motor management and union negotiators began talks in May but remained at odds over bonuses, the retirement age and other issues before reaching a deal.

Both sides finally agreed to raise the monthly basic salary by 100,000 won, equivalent to about $72, and set an annual bonus at 400% of the increased basic salary, plus a one-off cash payment of 12.7 million won, or about $9,180, under the preliminary deal, according to Hyundai officials.

Regarding the union's demand to raise the retirement age to 65, both sides agreed to immediately implement any new legislation, if enacted, while maintaining regular wages through age 64.

Each worker will also receive 15 treasury shares and other welfare benefits under the agreement.

The automaker suggested that it and the union had discussed plans to deploy humanoid Atlas robots on some assembly lines, likely first in the U.S., from 2028, but the company didn't elaborate.

Hyundai said management and union negotiators had recognized during the talks that advanced technologies such as physical artificial intelligence and robotics are essential to the future of mobility.

Write to Kwanwoo Jun at kwanwoo.jun@wsj.com

(END) Dow Jones Newswires

August 24, 2026 22:21 ET (02:21 GMT)