HD Hyundai Heavy Industries labor and management reach second tentative agreement; 11.5 million won lump sum plus 200% of base pay

[Financial News] HD Hyundai Heavy Industries' labor and management have reached a second tentative agreement in this year's wage and collective bargaining negotiations. The agreement comes 21 days after the first tentative deal was rejected in a vote by union members, and attention is focused on whether the prolonged labor-management conflict will come to an end.
HD Hyundai Heavy Industries said labor and management reached a second tentative agreement for the 2026 wage and collective bargaining negotiations at the 26th round of main talks held on the 23rd.
The key feature of the agreement is that it maintains the level of the base-pay increase while improving some compensation terms, including the seniority-step increment and lump-sum payment. The monthly base-pay increase was set at 120,000 won, the same as in the first tentative agreement, which was rejected earlier. However, the seniority-step increment included in the base-pay increase was raised by 5,000 won, from 50,000 to 55,000 won. The parties also agreed to pay a lump sum of 11.5 million won—500,000 won more than in the previous agreement—plus 200% of base pay.
The severance-pay calculation method was also revised. The parties agreed to unify the criteria previously applied separately to HD Hyundai Heavy Industries members and members of the former HD Hyundai Mipo. Previously, severance pay was calculated based on three months of wages for HD Hyundai Heavy Industries members and six months for former HD Hyundai Mipo members. Going forward, it will be calculated based on three consecutive months of wages chosen by the employee from the four months immediately preceding retirement.
The parties also agreed to provide 300,000 welfare points for this year only and to apply the mutual aid payment retroactively from June 1. With labor and management having reached a second tentative agreement, the strike and high-altitude sit-in also appear to be winding down. Kim Dong-ha, the union branch chief who had been staging a sit-in on a crane about 25 meters high inside Main Assembly Plant No. 1 at the Ulsan headquarters since the 18th, ended his protest atop the crane that day. The union held seven-hour partial strikes involving all members for five consecutive days, from the 19th through that day.
The union plans to hold a vote among its members around the 26th or 27th. If the proposal wins majority support, this year's wage and collective bargaining negotiations will be finalized.
A representative of HD Hyundai Heavy Industries said, "As labor and management have once again reached a tentative agreement through negotiations, we hope this agreement will lead to an amicable resolution."
[email protected] Jung Won-il Reporter