Kia Reaches Tentative Wage Agreement After Hyundai, Avoiding Strike

Final Decision to Be Made by Union Member Vote on August 28

Agreement Reached on Serious Industrial Accident Prevention and Job Security

Following Hyundai Motor Company, Kia's management and union have also reached a tentative agreement in their wage and collective bargaining negotiations, making it likely that wage talks will conclude without labor disputes for the sixth consecutive year.

According to the automobile industry on August 25, representatives from both Kia's management, including CEO Song Minsoo, and union, including branch chief Kang Seongho, held their 12th main negotiation session at Autoland Gwangmyeong on this day. As a result, they agreed on a tentative wage and collective bargaining agreement without a strike for the sixth straight year.

The major components of the agreement include: ▲an increase in base salary by 100,000 won; ▲a management performance bonus of 300% of base salary plus 4 million won; ▲a quality improvement incentive of 100% of base salary plus 4.7 million won; ▲a 4 million won bonus to commemorate winning the 2026 Auto Car Awards; ▲a collective bargaining settlement incentive consisting of 47 shares of Kia stock; and ▲special points (500,000 points) for achieving the maximum production and sales targets by 2026. The tentative agreement will be finalized through a union member vote scheduled for August 28.

Before this, Hyundai Motor Company's management and union held their 16th round of wage negotiations in the Main Building's Companion Room at the Ulsan plant from the afternoon of the previous day, and reached a tentative agreement in the morning of August 25.

Additionally, on the same day, Kia's management and union signed an 'Agreement for the Prevention of Serious Industrial Accidents and Strengthening Future Competitiveness for Employment Stability.' According to Kia, this agreement includes provisions to establish a culture of safety to prevent serious industrial accidents, to jointly respond to industrial changes between labor and management, to enhance competitiveness, and to continue growth so that employee job security is maintained.

Kia also decided to contribute 4 billion won as a social contribution fund, which will be used for joint development within local communities and to assist neighbors in need.

This content was produced with the assistance of AI translation services.