HD Hyundai Heavy Industries Begins Partial Strike; Dispute Ultimately Centers on Base-Pay Increase

[Financial News] The Hyundai Heavy Industries branch of the Korean Metal Workers’ Union (KMWU) ultimately began a rotating strike on the 2nd. This marks the fourth consecutive year of strikes since 2023. HD Hyundai Heavy Industries presented a proposal, but the union rejected it, leading the two sides to conduct strikes and negotiations simultaneously.
According to labor and management at HD Hyundai Heavy Industries, the union rejected management’s proposal the previous day and began the strike approved on August 27.
The action began with a seven-hour partial strike involving executive officers, bargaining committee members, and delegates. Partial strikes will then be held in rotation by affiliated organizations through the 10th. Normal operations will continue on the 3rd and 7th, while all union members will stage a four-hour partial strike on the 15th.
Negotiations will proceed at the same time. At the 17th main bargaining session on August 27, labor and management agreed to increase the pace by holding talks three times a week, including working-level negotiations. Both sides told Financial News that they referred to the proposal rejected by the union as the “first proposal,” signaling their willingness to seek an agreement.
A union official said, “The union rejected management’s first proposal, but this does not mean that negotiations have broken down.” An HD Hyundai Heavy Industries official also explained, “Negotiations have not broken down. The first proposal was rejected, so talks will continue from tomorrow while the partial strike is underway.”
The problem is the gap between labor and management. Opposition within the union is growing because management’s proposed base-pay increase is lower than last year’s. Many posts on the union’s website argue that base pay should rise by at least 150,000 won, citing securities analysts’ forecasts that this year’s operating profit could increase by up to twice last year’s figure of approximately 2 trillion won.
The union demanded a monthly base-pay increase of 149,600 won, excluding the seniority-based increase, a 100% increase in bonuses, and the distribution of at least 30% of operating profit as performance-based compensation. Management countered with a 105,000-won base-pay increase, including a 35,000-won seniority-based increase, along with an incentive payment equivalent to 200% of monthly base pay plus 10 million won and performance-based pay. Last year’s agreed base-pay increase was 135,000 won, including the seniority-based increase.
[email protected] Kim Yun-ho Reporter