Hyundai Steel reaches tentative wage deal, first in Hyundai Motor Group this year

Hyundai Steel has become the first Hyundai Motor Group affiliate to reach a tentative wage and collective bargaining agreement this year. Labor and management agreed to raise base pay by 80,000 won ($56) and pay a performance bonus of 300 percent, while committing to guarantee employment through retirement for all current union members as the industry adapts to changes including the introduction of AI.

According to industry sources Friday, Hyundai Steel's labor and management finalized the tentative agreement for 2026 wage and collective bargaining negotiations. The deal must still be ratified by a union membership vote before taking effect.

The tentative agreement includes an 80,000 won increase in base pay, combining a regular raise of 50,280 won and a step increment of 29,720 won. Allowances covering seniority pay and health support will also rise by 5,045 won.

The total performance bonus package amounts to 300 percent of monthly base pay. This includes a management performance bonus of 200 percent — comprising a 100 percent quality-improvement incentive and a 100 percent production incentive — plus a separate 100 percent livelihood-support payment. Workers will also receive a 2.5 million won incentive for the mass production of low-carbon steel sheets, a 2.5 million won commemorative payment marking the establishment of a new labor-management culture, and 300,000 won in traditional market gift vouchers to support local commerce.

The collective bargaining agreement also includes measures to strengthen job security and expand welfare benefits. Through a separate memorandum, labor and management agreed to guarantee employment through retirement for all current union members at domestic worksites as the company adapts to changes in the industrial environment, including the adoption of AI.

The two sides also agreed to form a welfare improvement task force and a wage system reform committee to overhaul benefits and job classification and allowance structures. They further committed to jointly reviewing new business opportunities — including data centers and solar power generation — to identify growth investment areas, and to continue cooperating on strengthening business competitiveness and improving productivity.

Other Hyundai Motor Group affiliates, however, remain deadlocked in their own wage talks. The Hyundai Motor union has continued staging partial strikes to increase pressure on management, while the Kia union has secured the right to strike and plans to enter intensive negotiations after next week's summer vacation period.

The Hyundai Motor union has been holding four-hour partial strikes through Friday and has raised the possibility of a full strike after the summer break. The union contends that management has the financial capacity to offer more but has been delaying additional wage proposals. Management says it has put forward its best offer after weighing last year's earnings, the current business environment and future investment needs.