HD Hyundai Heavy Industries Union Rejects Wage Agreement, Re-negotiations Expected

HD Hyundai Heavy Industries' wage and collective bargaining agreement was rejected in a vote by union members. The union is expected to seek re-negotiations with management, demanding an increase in fixed salaries, including base pay.

According to Yonhap News on October 2, the HD Hyundai Heavy Industries Labor Union (Metal Workers' Union, Hyundai Heavy Industries Branch) conducted a vote among its 8,100 members regarding the tentative agreement. Out of 7,541 voters, 3,932 (52.14%) opposed the agreement, while the approval rate was only 47.58%. The voter turnout was 93.1%.

The tentative agreement included a monthly base salary increase of 120,000 won (including seniority increments), a one-time bonus of 11 million won, a 200% bonus payment, performance bonuses, expanded rewards for long-term employees, and new hires in production technology.

Both sides estimated that the combined effect of the base salary increase, one-time bonuses, and performance bonuses would result in a payment effect of approximately 40.56 million won per member. This is the largest amount ever and represents an increase of 10.61 million won compared to last year's negotiations. However, it did not gain the approval of the union members.

The rejection is interpreted as a result of the base salary increase not meeting the expectations of the members. Previously, the union and management had agreed to raise the base salary by 130,000 won in 2024 and 135,000 won last year, but this year's tentative agreement proposed an increase of only 120,000 won.

Additionally, the fact that Samsung Heavy Industries raised its base salary by 131,786 won this year is believed to have influenced the decision. Last year, HD Hyundai Heavy Industries reported sales of 17.5695 trillion won and an operating profit of 2.0427 trillion won, surpassing Samsung Heavy Industries' sales of 10.65 trillion won and operating profit of 862.2 billion won.

Meanwhile, with the rejection of the tentative agreement, the union is expected to increase pressure for negotiations by demanding a higher increase in fixed salaries, including base pay.