South Korea: Hyundai Motor Avoids New Strike After Wage Agreement

Tuesday 25 August 2026 - 13:32

The threat of a new social movement is receding at Hyundai Motor. After an exceptional strike last week, the South Korean automaker and its union have reached an agreement on wages and retirement conditions, leading to the suspension of planned walkouts this week.

A Compromise Found After Exceptional Mobilization

Negotiations between management and employee representatives culminated in the early hours of Tuesday with an agreement that includes a 100,000 won increase in the monthly base salary, approximately 62 euros, as well as a bonus equivalent to four months' salary.

This agreement comes after a particularly well-followed mobilization. About 40,000 employees out of the 73,000 employed by the manufacturer participated in a full day of strike last Friday. Such mobilization had not been observed at Hyundai Motor for ten years.

The conflict primarily revolved around wage demands, but also included issues regarding employees' retirement conditions.

This Week's Walkouts Suspended

In light of the progress made in discussions, the four-hour work stoppages initially scheduled for Monday and Tuesday have been suspended.

However, the compromise is still subject to a decisive step: union members will vote on August 31. Its adoption will allow for a definitive resolution to this social conflict.

The agreement also includes changes to the retirement system. The future increase in the retirement age should be accompanied by the removal of the salary cap applied to employees nearing retirement.

A Mixed Economic Context

This agreement comes as Hyundai Motor operates in a more challenging business environment. The manufacturer achieved a record revenue of 49.2 trillion won in the second quarter, but its operating profit fell by 20.8% year-on-year, mainly due to declining sales.

Resolving the social conflict is therefore a significant issue for the group, which must maintain the continuity of its production while addressing its employees' demands.

However, the suspension of the strike does not yet signify the definitive end of the standoff. The union vote on August 31 will be the next determining event for Hyundai Motor.