Hyundai Steel has finalized its wage and collective bargaining agreement for the year. It is the first case among major affiliates of Hyundai Motor Group to have a tentative agreement approved by union members this year.
According to industry sources, the Hyundai Steel labor union conducted a vote on the tentative agreement from 6 a.m. on August 3 until 3 p.m. on August 5. The counting took place at the Hyundai Steel branch in Chungnam.
A total of 7,179 members participated in the vote. The results showed 4,064 votes in favor (56.61%) and 3,115 votes against (43.39%), leading to the approval of the tentative agreement. The agreement includes an 80,000 won increase in base salary, a performance bonus of 300% plus 5 million won, and a 300,000 won gift certificate.
The union has previously requested that the company fulfill its commitments regarding investments in new facilities and address issues related to the withdrawal of wage lawsuits and employee promotions.
The management expressed that reaching consensus between labor and management will help overcome the management crisis in the second half of the year and stated its commitment to continuously consider and improve employee morale.
On August 3, Hyundai Steel reported disappointing earnings. For the second quarter of this year, the company recorded consolidated sales of 6.1073 trillion won and an operating profit of 577 billion won. While sales increased by 2.7% compared to the same period last year, operating profit fell by 43.3%. This decline is attributed to rising raw material costs, high exchange rates, and weak demand for rebar due to a downturn in the domestic construction market.
There has been notable discontent regarding the tentative agreement. Some labor groups criticized the agreement as a 'hasty settlement,' pointing out that while Hyundai Steel's operating profit for 2025 is projected to increase by 37.4% compared to the previous year, the proposed performance bonus remains largely unchanged from last year. The projected operating profit for Hyundai Steel in 2025 is 219.2 billion won, a 37.4% increase from 2024.
The labor and management have shown differences over wage increases and the size of performance bonuses during this year's negotiations. The union had secured legal dispute rights following a decision by the Central Labor Relations Commission to halt mediation and conducted a member vote.
However, with the passage of the tentative agreement in the member vote, concerns about production disruptions have been alleviated. The labor and management's negotiations for this year will be finalized through subsequent procedures, including a signing ceremony.
* This article has been translated by AI.
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