Seoul: Hyundai Motor Co. and its labor union have tentatively reached a wage agreement following a series of strikes that significantly disrupted production.

According to Yonhap News Agency, the agreement was reached during the 17th round of negotiations. The terms include an increase in the monthly base pay by 100,000 won (approximately US$72.20), a performance bonus exceeding 400 percent of the monthly salary, and an additional payment of 12.5 million won. The agreement also proposes extending the retirement age from 60 to 65, contingent on changes in related laws and regulations. A union vote scheduled for August 31 will determine if this agreement will finalize this year's wage negotiations at South Korea's largest automaker.

The 400,000-member union had previously engaged in a total of 60 hours of strikes this year, leading to around 120 hours of production disruptions over two shifts. This labor action included a full-day strike, the first in a decade, and resulted in cumulative production losses of approximately 55,200 vehicles, with lost sales estimated to exceed 2.3 trillion won.

Hyundai Motor emphasized the mutual understanding between management and the union on the importance of adopting advanced technologies, such as physical artificial intelligence (AI) and robotics, to ensure the company's competitiveness and survival. The company expressed its commitment to transparently sharing information on new projects and collaborating on industry changes.

The agreement aligns with Hyundai Motor's future plans to incorporate humanoid robots, developed by its subsidiary Boston Dynamics, into its U.S. manufacturing plant in Georgia by 2028. The automaker aims to gradually expand the integration of these robots across its global production facilities.