Hyundai Steel and Subsidiaries Reach Labor Agreement Under New Law

By AJP Posted : September 10, 2026, 13:36 Updated : September 10, 2026, 13:36

Hyundai Steel and its subsidiaries have signed a collective agreement through primary-subcontractor negotiations, marking the first instance since the implementation of the Yellow Envelope Law (revised labor union law).


On September 10, the Ministry of Employment and Labor announced that Hyundai Steel and four of its subsidiaries—Hyundai ITC, Hyundai IEC, Hyundai IMC, and Hyundai ISC—signed the "2026 Primary-Subcontractor Negotiation Agreement" at the Hyundai Steel plant in Dangjin. This is the first case of a collective agreement being reached through actual negotiations between primary and subcontractor labor unions since the revised labor law took effect on March 10.


The revised labor law expanded the definition of an employer to include those who can substantially and concretely control or determine the working conditions of employees, even if they are not parties to the employment contract.


Previously, the Labor Relations Commission decided to separate the bargaining units for the four labor unions of Hyundai Steel's subsidiaries and the labor unions of affiliated companies. The initial decision was made on April 16, and the re-examination decision was made on June 24. Consequently, Hyundai Steel has been conducting negotiations for each bargaining unit.


The primary-subcontractor negotiations with the four subsidiary labor unions began with an introductory meeting on August 20 and included a total of four sessions. The management of the subsidiaries also participated in discussions regarding industrial safety issues, recognizing Hyundai Steel's employer status through the Labor Relations Commission.


As a result of the negotiations, Hyundai Steel and the subsidiary labor unions agreed to continuously improve the industrial safety and health management systems of the subsidiaries. They also committed to establishing a roadmap for long-term improvements to enhance safety and health standards.


The Cheonan branch of the Ministry of Labor supported the negotiations by facilitating practical discussions between labor and management and presiding over labor-management meetings to reconcile the positions of the primary and subcontractor labor unions.


Labor Minister Kim Young-hoon stated, "This is the first case where the intent of the revised labor union law, which promotes dialogue and coexistence between primary and subcontractors, has been realized on the ground. The signing of this collective agreement is a significant opportunity for Hyundai Steel's workplace to become safer through dialogue between primary and subcontractors." He added, "The Ministry of Labor will do its utmost to support the promotion of dialogue between primary and subcontractors to ensure the successful establishment of primary-subcontractor negotiations."





* This article has been translated by AI.

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