South Korean automaker Hyundai Motor Co.'s management and labor on Friday agreed to a tentative wage deal for this year, marking the quickest deal in eight years.

Under the agreement, the base wage will increase by 45,000 won ($40), with extra bonuses, according to the company. It also included ways to adjust work shifts to reduce working hours.

The company and the union also agreed to make concerted efforts to improve productivity and create a 50 billion-won fund to support subcontractor firms.

"We will strive to increase productivity, provide cars in time and maintain high quality in the latter half of the year to meet consumer needs," a company official said.

It is the first time in eight years that the two parties have reached an agreement before the summer vacation starts. They have been holding talks on wage increases since May.

The agreement will be put to a vote next week by union members for final approval.

(Yonhap)