SEOUL -- Hyundai Motor Co. and its unions reached agreement late Tuesday on a new one-year contract, ending a series of part-day walkouts that has cost the automaker more than 100,000 units of production valued at $1.1 billion.
Hyundai spokesman Kim Joe-Keun said the company accepted the workers' demands for a five-day workweek effective Sept. 1 and agreed to an 8.4 percent pay increase. Workers had been demanding 11 percent, equal to about $100 per month.
Other details of the settlement weren't immediately available. The company's 39,000 unionized workers also had been demanding a voice in management decisions and improved working conditions.
The workers began their part-day walkouts on June 20 and have been refusing most overtime since then, severely crimping Hyundai's output. Reflecting the importance of the auto industry to Korea's export-oriented economy, the government threatened last week to impose a mandatory back-to-work order if a settlement was not forthcoming.