Hyundai Heavy Industries Proposes 127,000 KRW Increase, Union Calls It "Embarrassing"

【Financial News Ulsan=Choi Susang Reporter】The Hyundai Heavy Industries labor union, which rejected the management's wage increase proposal, held its first strike of the year.
Hyundai Heavy Industries union began a 3-hour strike for all members from 2 PM on the 11th. Members gathered in front of the union office within the Ulsan Shipyard held a central dispute countermeasure committee launch ceremony.
The union stated, "The company recently presented the first proposal related to this year's negotiations, but the content was embarrassingly insufficient," adding, "There was no respect for the members who achieved the highest performance in history and maintained the world's number one shipbuilding industry."
The company expects minimal production disruption due to the strike.
HD Hyundai Heavy Industries labor and management have negotiated over 10 times this year but have not reached any results.
The management delivered the proposal to the union for the first time during the 12th negotiation on the 9th, but the union rejected it, judging it to be lower than expected.
The management's proposal includes a monthly base salary increase of 127,000 KRW (including step increases), a 5 million KRW incentive, and a special performance bonus.
The management claims that the total variable pay, including the proposed incentives and bonuses, is estimated to be the largest ever at over 20 million KRW per member.
However, the union strongly insists on a base salary increase rather than an expansion of variable pay in this year's negotiations.
The union demands a base salary increase of 141,300 KRW (excluding step increases), highlighting a significant difference in positions between labor and management. Union Branch Head Baek Hoseon began a hunger strike on the 9th.
The management's stance is that even though the shipbuilding industry is booming recently, they must consider the intensifying competition with China for orders and the increasing burden of fixed costs.
The union has announced a 7-hour strike for all members on the 18th.


ulsan@fnnews.com Choi Susang Reporter