Hyundai Motor's South Korea Union Approves Wage Deal -union

Hyundai Motor Co's unionised workers in South Korea voted in favour of a wage deal with the automaker, a Hyundai Motors union official said on Tuesday.

The union said a total of 61.9% of its voting union members approved the tentative agreement reached last week, while 37.8% rejected the deal.

Hyundai Motor confirmed the results.

The wage deal, which will raise each worker's annual earnings by about 9%, comes days after Hyundai announced a plan to build a dedicated electric vehicle (EV) factory in South Korea, which will be its first new car plant in the country in almost three decades.

The union, one of the biggest in South Korea with more than 46,000 members, demanded Hyundai invest in the country to support new business, including urban air mobility, purpose-built vehicles and electric vehicle-related auto parts manufacturing. One of the union's demands, building an EV-related manufacturing facility, made it into the tentative agreement.

In May, Hyundai Motor Group, which includes Hyundai Motor and Kia Corp, said it would invest 63 trillion won ($48.2 billion) in South Korea through 2025.

Separately, the South Korean auto group said it would invest more than $10 billion in the United States by 2025, which includes its plans to invest $5.5 billion in Georgia to build EV and battery facilities.

Hyundai Motor's unionised workers in South Korea voted earlier this month for a possible strike over demands for higher wages and anger that management was prioritising overseas investment.

Hyundai Motor workers last went on strike in 2018.

($1 = 1,306.0200 won)