HD Hyundai Heavy Industries has reached a final agreement on this year's wage and collective bargaining negotiations, bringing an end to a prolonged labor dispute that began in June.
On October 27, the labor union announced that 55.06% of its 8,100 members voted in favor of the second tentative agreement.
Previously, the first tentative agreement was rejected on October 2, with 52.14% of members voting against it. Following this, the union engaged in partial strikes and crane sit-ins, prolonging the conflict.
In response, the two sides resumed negotiations and reached the second tentative agreement on October 23. This agreement includes a monthly base salary increase of 120,000 won (including a seniority increase of 55,000 won), a one-time bonus of 11.5 million won, a guaranteed wage of 200%, and a welfare point payment of 300,000 won. Compared to the first agreement, the automatic annual seniority increase has risen by 5,000 won, and the one-time bonuses have increased by 800,000 won.
Additionally, the agreement stipulates that retirement pay will be calculated based on three consecutive months chosen by the employee during the last four months before retirement. It also includes provisions for overseas training for 100 union members each in this year and next.
The company estimates that the combined effect of the salary increase, bonuses, and performance pay will average 41.36 million won per member.
The agreement also addresses the integration of working conditions following the merger with HD Hyundai Mipo. Collective agreements and employment rules will be standardized based on HD Hyundai Heavy Industries, while some welfare conditions will reflect the more favorable terms from either company for union members.
Furthermore, a special agreement for industrial transition to address automation and digitalization in the shipbuilding industry will be established, with employment stability measures to be discussed in a joint labor-management committee.
This wage agreement is expected to alleviate uncertainties in production caused by labor disputes and secure stable operational conditions. With a backlog of orders for high-value ships, it is anticipated to positively impact future productivity and profitability.
An HD Hyundai Heavy Industries representative stated, "This wage agreement lays the foundation for stable wage increases and performance-based rewards, and it is a significant step in restructuring collective agreements following the merger. We will continue to listen to the voices from the field and strive to create a vibrant and cohesive organizational culture."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.