Hyundai Motor has come to a tentative wage deal with the South Korean labour union on Wednesday.
Hyundai witnessed the worst strikes in the history which disrupted the output at its domestic production base. The deal is subjected to a vote of 50,000 union members on Thursday.
Earlier in the month of August, the union members had rejected a deal proposed by Hyundai saying that the agreement was less generous.
The South Korean labour union has held 24 rounds of full-scale and partial strikes since July 19. Which prevented Hyundai from producing 1,31,851 vehicle worth $2.60 billion.
In the latest agreement, Hyundai will be increasing the basic monthly pay by 72,000 won (approximately Rs 4,200) as well as incentives worth 3.5 times their basic pay.
In a statement released by Hyundai motor said, "The company and the union have formed a common ground that we should prevent further catastrophe as a prolonged strike has had a substantial impact on not only the company but the regional and national economy."
This agreement was made after the government threatened to intervene to suspend the strike and criticising the union walkout despite being paid healthily by the automaker.
Hyundai Motor ranks fifth as the world's largest car manufacturer including its affiliate Kia Motors. But the firm has been hit by strikes this year, although it will make up for the loss at the end of each year.