Negotiations between HD Hyundai Heavy Industries management and labor over the 2026 wage and collective bargaining agreement have hit another snag. Although the total wage increase has reached a record high, union members remain dissatisfied with the company’s proposal, and reports suggest they are pressuring management by threatening a full-scale strike.
As of October 2, the tentative agreement on 2026 wages and collective bargaining—reached just days earlier—was rejected by union members in a vote. The ballot was open to all 8,100 members of the HD Hyundai Heavy Industries union; a total of 7,541 members participated, with 3,932 (52.14%) voting against the proposal. With an approval rate of 47.58%, the agreement failed to pass.
In light of this, labor and management at HD Hyundai Heavy Industries plan to resume negotiations to redraft the preliminary agreement for the 2026 collective wage bargaining.
The latest tentative agreement reached between labor and management at HD Hyundai Heavy Industries includes a monthly base salary increase of 120,000 won (approximately $89.71, including a 50,000-won seniority-based step increase); a one-time bonus of 11 million won (approximately $8,200) plus a performance bonus equivalent to 200% of the base salary; an expansion of the scope of rewards for long-serving employees; an agreement to recruit for new production and technical roles in 2026; and an extension of paternity leave from 10 to 20 days.
Based on this preliminary agreement, labor and management at HD Hyundai Heavy Industries estimate the total value of the package—comprising base salary increases, a one-off allowance, and various bonuses—at 40.56 million won (approximately $3.03 million). This marks a record high, representing an increase of 10.61 million won (approximately $7,900) over the previous year; however, the wage proposal still failed to gain the approval of union members.
Analysts in the South Korean shipbuilding industry attribute the rejection of the “record-breaking” wage hike agreement primarily to the fact that the increase in fixed pay fell short of union members’ expectations. During negotiations for the 2024 and 2025 annual wage and collective agreements, labor and management at HD Hyundai Heavy Industries agreed to raise base salaries by 130,000 won and 135,000 won, respectively; by comparison, the 120,000-won increase proposed in the aforementioned preliminary agreement appeared “underwhelming.”
Analysts point out that the impasse in wage negotiations at HD Hyundai Heavy Industries is also linked to Samsung Heavy Industries. Although Samsung Heavy Industries’ financial performance lagged behind that of HD Hyundai Heavy Industries, the former agreed to raise monthly base wages by 131,786 won (approximately $98.52); in contrast, the increase at HD Hyundai Heavy Industries was only 120,000 won—a disparity that may have contributed to the union members’ rejection of the proposed wage agreement.
During this year’s wage negotiations at HD Hyundai Heavy Industries, the union pressured management by staging seven rounds of partial strikes involving the entire membership. Following the rejection of the preliminary agreement, rumors are circulating that the union may resort to tougher measures, such as a full-scale strike.
In response, a representative from HD Hyundai Heavy Industries stated: “The company deeply regrets that the preliminary agreement—which represented the best terms in the shipbuilding industry—failed to secure the support of union members. In future negotiations, the company will continue to seek solutions that provide reasonable rewards for performance while maintaining sustainable competitiveness.”