HD Hyundai Heavy Industries wraps up labor talks; 41.36 million won per person

[Financial News] HD Hyundai Heavy Industries and its labor union have concluded this year's wage and collective agreement negotiations. This follows the approval of a second tentative agreement after the first was rejected in a union vote and the sides renegotiated. The agreement has also resolved differences in working conditions that arose from the merger with HD Hyundai Mipo, and is expected to accelerate the stabilization of the integrated company.
HD Hyundai Heavy Industries said on the 27th that the second tentative agreement was approved with 55.06% voting in favor in a vote held that day by the Hyundai Heavy Industries branch of the Korean Metal Workers' Union. The company and union plan to proceed with follow-up steps, including a signing ceremony.
The key points of the agreement are a 120,000-won increase in base pay and a lump-sum payment of 11.5 million won plus 200%. The base-pay increase includes 55,000 won in step increases. The step increase, previously 35,000 won, was raised by 20,000 won, widening pay increases for long-serving employees.
For the lump-sum payment, the agreement provides for 10.5 million won in cash, 1 million won in gift certificates, 300,000 won in welfare points, and an amount equivalent to 200% of base pay. The union estimated that the combined effect of the annual 1.59 million won wage increase resulting from the base-pay rise, compensation averaging around 17.36 million won, and an increase in severance pay would amount to an increase of about 41.36 million won per union member.
The company and union had reached their first tentative agreement on the 30th of last month, but it was rejected after 52.14% voted against it. The union then began a partial strike, increasing pressure, and the dispute intensified as branch chief Kim Dong-ha staged a high-altitude sit-in on a crane. However, the sit-in ended after the sides reached a second tentative agreement on the 23rd, and the agreement's final approval today has moved labor-management relations toward normalization.
Uncertainty on the production floor is also expected to ease. Given the shipbuilding industry's long construction times and close links between production stages, stable workforce management is considered a key factor in productivity and delivery schedule management. With efficient management of the workforce and production facilities needed following the launch of the integrated company, the settlement is also expected to contribute positively to realizing merger synergies.
An HD Hyundai Heavy Industries official said, "This settlement of the wage and collective agreement has laid the groundwork for stable wage increases and performance-based compensation, and has served as a meaningful opportunity to revise the collective agreement following the merger." The official added, "We will continue to listen more closely to the voices on the shop floor and take the lead in creating a vibrant and harmonious organizational culture."
With HD Hyundai Heavy Industries concluding this year's labor-management negotiations after Samsung Heavy Industries, Hanwha Ocean is now the only one of the country's three shipbuilders yet to reach an agreement. Differences between Hanwha Ocean's labor and management over matters including performance-bonus calculation criteria and employment conditions remain unresolved.

[email protected] Jung Won-il Reporter