Hyundais will be in short supply this coming month. Workers in Korea refused to make them and went on strike in July and August. Hyundai and the unions reached a tentative wage deal today, “ending the second-costliest strike in the firm’s 45-year history,” as Reuters reports.
Yesterday, a company executive told Reuters that Hyundai could miss its overseas sales target for September because fewer vehicles were shipped in August. Hyundai’s U.S. vehicle exports from South Korea dropped by a quarter in July from June.
The wage deal includes a 5.4 percent rise in basic salaries, a bonus equivalent to five months’ salary plus a 9.6 million Korean won ($8,500) payment for each worker. Most importantly, it was agreed to scrap the overnight shift at South Korean factories from March 2013. Hyundai will shorten working hours and introduce two shifts of eight hours and nine hours apiece instead of the current two
An end to the overnight shift also was at the center of union demands a GM’s Korean factory. Under the GM deal, a new shift scheme in will be tested in the first quarter of 2013.
Hyundai’s union members will vote on the wage agreement on Monday.