Hyundai Motor has accepted a union proposal requiring the company to consult with the union when pursuing new businesses.
Hyundai Motor (005380.KS) management and labor reached a tentative agreement on the matter during their 12th wage negotiation session held Tuesday, according to industry sources.
The two sides agreed that the company will proceed through labor-management consultation when developing new businesses or handling employment-related issues such as workforce operations. Previously, management had opened a channel for the union to participate in management decisions only in the automobile division. Now it has opened a channel for the union to voice its views across all businesses, including artificial intelligence, robotics and hydrogen.
Management also accepted the union's demand to internalize core electrification components such as batteries. The union has demanded in-house production of components, viewing that sourcing core parts externally could increase pressure to restructure the existing workforce.
Hyundai Motor management and labor agreed to build a specialized system for its next-generation hydrogen fuel cell business that can create synergy with the passenger vehicle business. They also agreed to complete construction of the Ulsan electric vehicle plant by 2027.
The two sides failed to reach agreement on this year's wages. Management proposed a negotiation package centered on a 79,000 won increase in base pay and a management performance bonus of 350% plus 9 million won, but the union did not accept it.
