SeAH Steel and its labor union have reached a dramatic agreement on this year's wages and collective bargaining agreement after the initial proposal was rejected. The agreement includes a 3.7% wage increase and a record-high bonus of 4.5 million won, bringing a conclusion to prolonged labor negotiations.
According to industry sources on September 19, 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 a trust recovery bonus of 2.5 million won and a no-accident and productivity improvement bonus of 2 million won. The total bonus of 4.5 million won is the largest in the company's history.
Other benefits include a 500,000 won travel allowance for the Chuseok holiday and a 100,000 won summer health support payment. The retroactive wage increase is expected to average 1,026,000 won per employee, with total expected one-time payments amounting to 8,364,000 won. However, actual amounts may vary based on individual wages and retroactive payments.
Working conditions and welfare benefits will also be improved. To enhance wages for the day shift, the A and F shifts will be consolidated, and the F shift's working hours will be adjusted to 8:30 a.m. to 4:30 p.m.
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, the company will implement a technical mentor and senior intern program and increase the wage payment rate for those aged 61 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-cost Chinese products.
In the second quarter of this year, despite the pressure from low-cost 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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