Seoul [South Korea], September 11 (ANI): Hyundai Motor reached an settlement with its union in Korea to distribute over 2 trillion gained ($1.80 billion) in bonuses in 2025, even because the automaker faces rising challenges from excessive U.S. tariffs, as per a report by Pulse, the English service of Maeil Business Newspaper Korea.
According to the deal, introduced on Wednesday, the Korean staff will obtain a 100,000 gained (USD 71.95) base wage improve, efficiency bonuses equal to 450 per cent of base pay plus a 15.8 million gained (USD 11,117.48) lump sum, and 30 Hyundai Motor shares (10 frequent and 20 most popular). With a mean base wage of 4 million gained (USD 2,880), every worker is anticipated to take dwelling about 40 million gained (USD 28,800) in incentives, with the full payout estimated at 2.5 trillion gained (USD 1.80 billion) for Hyundai’s 63,000 staff. This determine represents about 40 per cent of the corporate’s consolidated internet revenue of 6.63 trillion gained (USD 4.78 billion) within the first half of the yr.
As per the report, the outlook for the rest of 2025 stays unsure, nonetheless. While Seoul and Washington have mentioned reducing tariffs from 25 per cent to fifteen per cent, the choice nonetheless awaits an government order from U.S. President Donald Trump. Japan will see its tariff decreased to fifteen per cent beginning September sixteenth, 2025, however Korea has but to safe the identical phrases. Adding to the pressure, delays within the completion of Hyundai Motor’s Georgia plant as a result of detention of native Korean employees may disrupt the availability of batteries within the U.S. market.
The settlement additionally mirrored union calls for for job safety; the 2 sides agreed to internalize manufacturing of six-speed transmissions for the Palisade hybrid, with mass manufacturing focused by the tip of 2027. Currently equipped by Hyundai Transys, the transmissions could possibly be produced instantly by Hyundai Motor, probably lowering orders for the affiliate. The transfer may additionally drive prices up as labor bills at Hyundai Motor are increased than at Hyundai Transys.
The union additionally included wording on increasing in-house manufacturing of key electrical car elements akin to batteries, regardless of Hyundai’s official denial of direct battery manufacturing plans. Analysts say the push displays efforts to reassign staff as demand for inside combustion engines and associated transmissions declines, with the union prioritizing prolonged retirement ages and job safety.
The settlement additionally supplies for coaching software program specialists inside manufacturing vegetation, which aligns with the business’s transition to software-defined automobiles (SDVs).
The tentative deal can be put to a vote on the central labor council’s basic assembly on September fifteenth, 2025, and additional strikes may comply with whether it is rejected. The earlier week’s 16-hour strike, the primary at Hyundai in seven years, was estimated to have brought on losses of over 400 billion gained (USD 289 million).
‘The Hyundai Mobis union, in the meantime, walked out of negotiations and plans partial strikes this week regardless of Hyundai Motor’s tentative settlement. Hyundai Transys, which continues to be reeling from a protracted strike in 2024, is going through comparable tensions with its Seongyeon plant rejecting administration’s newest supply of a 68,000 gained (USD 49.10) base pay improve and 250 per cent bonuses plus a 7 million gained (USD 5,060) lump sum,’ the report said. (ANI)