Hyundai, Kia avert UAW-like strike, accepts wage hike demand from workers

Hyundai Motor has reached a deal with its workers' union to stave off a potential strike at its facilities in South Korea. On Monday, the Korean auto giant accepted wage hike demand from its workers to end chances of a strike in the lines of United Auto Workers (UAW) in the US against the big three carmakers Ford Motor, General Motors and Stellantis. The deadlock ended after Hyundai agreed to increase annual wage of its workers by around 12 per cent.

Hyundai and Kia faced a major workers' union strike over demands for higher pay packages and for the retirement age to be increased. The National Labor Relations Commission had allowed the Hyundai's unionised workers to go on strike last month. Hyundai's workers union is one of the biggest in South Korea with nearly 45,000 members.

Last week, the union members held a voting on whether to hold a strike against the carmaker over the demands which included higher wages, a performance bonus and an increase in the mandatory retirement age to 64 from 60. While about 41 per cent rejected the deal, others had approved the tentative agreement with the carmaker to settle the matter.

Had the union workers went go ahead with the planned strike, it would have been the first wage-related conflict atHyundai in South Korea in five years. Workers at Hyundai Motor, world's third largest carmaker by sales along with its sister concern Kia, last went on strike in 2018. In July, the workers' union had held a four-hour strike for one day in support of a general strike.

A similar strike is held across the Pacific Ocean, in the United States, where United Auto Workers (UAW) is holding strike on similar demands against the three largest carmakers - Ford Motor, General Motors and Stellantis. The strike, which basically demands fair pay and share of profit made by the Detroit's famous Big Three carmakers, has been on for the past four days.