HD Hyundai Heavy Industries Labor and Management Reach Tentative Agreement.. Basic Salary Increase of 133,000 Won

【Financial News Ulsan=Choi Su-sang Reporter】 HD Hyundai Heavy Industries labor and management prepared a tentative agreement for this year's wage negotiations on the 18th, which includes a monthly basic salary increase of 133,000 won (including a step increase of 35,000 won).
The tentative agreement also includes a bonus of 5.2 million won, payment of special pay (100% of agreed wages), and performance pay according to standards.
The labor and management reached this tentative agreement through the 14th negotiation at the Ulsan headquarters on this day. It has been 59 days since the negotiation meeting on May 20th.
The union plans to hold a vote on the tentative agreement for all union members on the 22nd. If more than half of the voters agree, this year's wage negotiations will be completely concluded.
In this year's negotiations, labor and management clashed over the scale and method of compensation suitable for the boom period in shipbuilding.
Both labor and management agreed on the need to "release money" to encourage and boost the morale of union members, but while the company focused on increasing variable pay such as bonuses and performance pay, the union emphasized the sustainability of wage increases by focusing on basic salary increases, showing differences in opinion.
The union held a total of four partial strikes since the 11th. Baek Ho-seon, the union branch manager who started a hunger strike on the 9th, was taken to the hospital on the 18th due to deteriorating health on the tenth day.
The tentative agreement reached on this day is interpreted as a result of concerns that if negotiations were prolonged in the midst of the union's strike and the branch manager's hunger strike, labor-management relations could deteriorate and the shipbuilding boom period could be missed.
In particular, labor and management are strongly determined to conclude this year's negotiations by July, before the summer vacation, and to enhance competitiveness in orders after returning from vacation.
This tentative agreement increases the basic salary by 3,000 won more than last year's settlement.
The company estimated the average payment of variable pay such as bonuses, special pay, and performance pay per union member to be over 27 million won. Both the scale of the basic salary increase and the payment of variable pay are explained to be the largest in history.
HD Hyundai Heavy Industries stated, "Labor and management reached a tentative agreement after repeated consultations and difficulties to meet the expectations of the field," and "We hope this settlement before the summer vacation will be a meaningful starting point for building a relationship of trust and harmony between labor and management."



ulsan@fnnews.com Choi Su-sang Reporter