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Latest News - September 2013

September 6, 2013
Hyundai motor union agree to pay rise
Source: Business Recorder
By:
Muhammad Iqbal

Hyundai Motor agreed a slightly smaller pay rise for its workers than last year, and lost less cars to stoppages as it faced down one of the few South Korean unions left with the muscle to squeeze employers.

The world's fifth largest automaker, along with its affiliate Kia Motors, had suffered stoppages from Aug. 20, but the company should be able to make up for the lost output through overtime work once the union members ratify the pay deal.

The 46,000 union members will vote on Monday on whether to accept the terms thrashed by their negotiators.

The share market reacted positively on Friday to the deal reached late the previous night.

Hyundai's stock rose 2.66 percent, to stand 7 percent higher than it was when the union calling stoppages, which had caused lost output of over 50,000 vehicles worth 1.02 trillion Korean won.

The tentative pay settlement, while less than last year's was still high given South Korea's low inflation and the company's slow earnings growth.

It included a 5.14 percent wage rise, and bonus incentives totalling 9.2 million Korean won ($8,400) per employee plus 500 percent of the basic monthly wage.

The unions had demanded eight months pay in bonuses, a gold medal worth $2,400, one-off payments for long-serving employees or workers whose children did not go to university.

 

 

 


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