Hyundai has reached a new contract with the United Auto Workers (UAW) auto union, ending over 40 days of rolling strikes. The contract, which still needs to be ratified by the union membership, includes an 11% pay raise for workers, with the remaining 14% to be received over the course of the contract. The wage increase will only apply to employees at Hyundai's manufacturing plants in Alabama and Georgia, with hourly wages set to increase by 25% by 2028. The move comes as Hyundai is investing $12 billion in building a new factory and two battery joint ventures in Georgia, which is expected to create 12,000 direct jobs. A recent study by the Center for Automotive Research found that Hyundai's operations contributed over $20 billion and nearly 200,000 jobs to the U.S. economy in 2021.
The Korean Metal Workers’ Union, representing roughly 180,000 auto workers, is negotiating a new annual contract for Hyundai’s vehicle assembly workers and has threatened to strike over disagreements on future hiring plans and sharing profits [02265017]. The union is also focused on safety risks as the industry expands. They are working on overhauling safety management systems and advocating for the creation of new jobs related to green industries. The union communicates with the new generation of workers through newsletters in various languages and aims to remove discrimination against migrant workers. While younger generations have a weaker willingness to fight against management, there are newly created unions by younger workers who are taking action. The union is also working on supply chain strategies and consultations to ensure sustainable employment.
Toyota in Japan and Hyundai or Kia in South Korea are facing challenges from technological transformation and electrification [02265017].