HD Hyundai Heavy Industries’ desire to reach a wage negotiation agreement before the summer vacation has become unlikely, as a provisional agreement reached a few days ago has been rejected by union members.
On the 22nd local time, HD Hyundai Heavy Industries union held an internal vote on the provisional wage agreement reached earlier. A total of 6,551 union members participated in the vote, with 6,193 members casting ballots, representing a turnout rate of 94.54%.
The voting results showed that 2,203 people voted in favor of the provisional agreement, accounting for 35.57%; 3,949 people voted against it, accounting for 63.77%; and 41 votes were invalid, accounting for 0.66%. Therefore, the provisional agreement reached between HD Hyundai Heavy Industries and its labor union was rejected.
It is understood that HD Hyundai Heavy Industries’ labor and management successfully reached a temporary agreement in the 14th negotiation on July 18. The temporary agreement includes: a basic salary increase of 133,000 won (approximately US$96.53, including 35,000 won for promotion), an incentive payment of 5.2 million won (approximately US$3,774.16), and special allowances at 100% of the agreed salary.
Compared to the first negotiation proposal put forward by the employer on July 9, the basic wage has increased from 127,000 won (approximately US$92.18) to 133,000 won, and the incentive bonus has increased from 5 million won (approximately US$362.90) to 5.2 million won. Regarding the basic wage, the union’s proposed amount is 141,300 KRW (approximately US$102.56).
During negotiations in 2024, the HD Hyundai Heavy Industries union staged 24 partial strikes, ultimately securing a 130,000 won (approximately US$94.35) increase in base salary (including promotions), slightly less than the 133,000 won that was rejected this time.
Given this revised negotiation proposal and the smooth conclusion of a provisional agreement at a relatively early stage, HD Hyundai Heavy Industries had hoped to complete wage negotiations before the summer vacation. However, due to the failure to obtain union member approval, it is now unlikely that HD Hyundai Heavy Industries will be able to formally conclude an agreement before the summer vacation.
It is understood that HD Hyundai Heavy Industries’ labor and management launched this year’s wage negotiations in May. After several rounds of negotiations, the two sides failed to reach a consensus and the conflict continued to escalate. Earlier this month, HD Hyundai Heavy Industries’ labor union obtained the legal right to strike after voting and the Korean Labor Relations Commission made a decision to suspend mediation. Since July 11, it has carried out four partial strikes, gradually escalating the intensity of the struggle.