Hyundai Motor wants to avoid further production losses that had put its sales growth at risk and so it has agreed to enter a tentative wage deal with the labor union leaders in South Korea. The agreement only came after the union conducted several partial strikes in July and August, resulting to a production loss of 76,723 vehicles valued at 1.59 trillion Korean won ($1.40 billion) as of Wednesday.
This is the No. 2 largest strike-related loss in the company's history. The negotiations began last May but they were delayed for various reasons because of disagreements about wages. The talks, which started in May, were drawn out because of issues like wages and overnight work as well as bringing temporary workers onto the regular payroll.
A spokesman said that the union members will vote on the agreement by Monday. These stoppages demonstrate just how risky labor is in the country. The company was able to avoid industrial action for the three years until 2012, and a break from the 1980s and 1990s. The U.S. vehicle exports from South Korea dropped by a quarter in July compared to the previous month.