SeAH Steel and its labor union have reached a dramatic agreement on this year's wage and collective bargaining agreement after the initial proposal was rejected. The agreement includes a 3.7% wage increase and the largest incentive payment in history, totaling 4.5 million won, bringing a conclusion to the prolonged negotiations.
According to industry sources on the 19th, the SeAH Steel labor union approved the second tentative agreement during a two-day general assembly held the previous day, with 62.71% voting in favor. This allows SeAH Steel and the union to finalize this year's collective bargaining agreement and focus on stabilizing production.
The key element of the second tentative agreement is a 3.7% wage increase, which consists of a 2.5% base wage increase (67,050 won) and a 1.2% step increase (32,184 won), totaling an increase of 99,234 won.
In addition to the wage increase, the company will pay 60% of the performance bonus in advance, amounting to 2,038,000 won, along with an incentive payment of 2.5 million won for restoring trust between labor and management, and an additional 2 million won for achieving zero accidents and improving productivity. The total incentive payment of 4.5 million won is the largest ever.
Including existing payments such as the Chuseok travel allowance of 500,000 won and summer health support of 100,000 won, the total expected payout from the agreement is 8,364,000 won. However, individual amounts may vary due to retroactive wage adjustments.
Working conditions and benefits will also be improved. To enhance wages for the day shift, the A and F shifts will be merged, and the F shift's working hours will be adjusted to 8:30 AM to 4:30 PM.
Compromises were also reached on contentious issues such as extending the retirement age and the wage peak system. Regarding the demand to extend the retirement age to 65 and abolish the wage peak system, a technical mentor and senior intern program will be implemented, and the wage payment rate for those aged 61 will be increased from 70% to 75%.
This agreement allows SeAH Steel to avoid a strike for the first time in 14 years and focus on stabilizing production amid ongoing uncertainties in the domestic special steel market due to the influx of low-priced Chinese products.
In the second quarter of this year, despite the pressure from low-priced Chinese imports, SeAH Steel expanded sales in growth sectors such as oil and gas, defense, and renewable energy, resulting in a 10.6% increase in revenue and an 11.5% increase in operating profit compared to the same period last year.
* This article has been translated by AI.
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