Seoul: The management and labor union of Hyundai Motor Co. have tentatively reached a wage agreement after prolonged negotiations and a series of strikes that disrupted production. The understanding was achieved in the 17th round of discussions, bringing temporary relief to South Korea's largest automaker.

According to Yonhap News Agency, the tentative agreement includes an increase in the monthly base pay by 100,000 won (US$72.20), a performance bonus exceeding 400 percent of the monthly salary, and an additional payment of 12.5 million won. An extension of the retirement age from 60 to 65 years was also proposed, contingent on future revisions of related laws and regulations.

The agreement, however, is pending approval through a union vote scheduled for August 31. If endorsed, it will conclude this year's wage negotiations, which have been marked by labor unrest. The union, comprising 400,000 members, initiated a total of 60 hours of strikes throughout the year, culminating in approximately 120 hours of production disruptions over two shifts. The labor actions included a full-day strike last Friday, the first such occurrence in ten years.

These strikes have reportedly led to cumulative production losses of about 55,200 vehicles, with lost sales surpassing 2.3 trillion won, as estimated by industry sources. The agreement, if ratified, is expected to stabilize operations and mitigate further economic losses.