Hyundai reaches union deal
SEOUL, South Korea (AP) — Hyundai Motor Co and its labour union reached a tentative agreement Thursday to eliminate night shifts and increase wages, moving one step closer to end the company’s first strike in four years.
The preliminary agreement means that workers will halt limited strikes they have been staging since July, which have resulted in 1.59 trillion won (US$1.4 billion) of lost output for South Korea’s largest carmaker, the company said.
Hyundai and union officials wrapped up their four-month negotiations and agreed to scrap night shifts starting March 2013. Hyundai will invest 300 billion won, or $264 million, in facilities to help it maintain the current level of output despite reduced working hours.
The deal will be put to a vote by Hyundai’s more than 40,000 unionised workers on Sept 3.
Kwon Oh-il, an official at Hyundai’s labour union, said it was uncertain whether the workers would approve the terms.