Hyundai Steel to Accept Voluntary Retirement from Production Workers at Pohang Plant

Measures Following Plant Downsizing...
Reassignment Also Planned
Applications Accepted Until the 14th, Extension Under Consideration

Hyundai Steel is accepting voluntary retirement applications from workers at its Pohang plant. This measure aims to achieve organizational efficiency by downsizing the plant operations and reallocating personnel amid continued poor performance in the steel industry downturn.

According to the steel industry, Hyundai Steel will implement voluntary retirement for 1,200 production workers at Pohang Plants 1, 2, and 3 from the 4th to the 14th. Since the end of last year, Hyundai Steel has been operating Pohang Plant 2 on a reduced scale due to deteriorating profitability caused by decreased demand for rebar products amid the construction industry slump.

The National Metal Workers' Union Hyundai Steel Branch, the Metal Workers' Union Pohang Branch, and the Korean Confederation of Trade Unions Pohang Branch held a press conference on November 15 last year at the main gate of Hyundai Steel Pohang Plant 1, protesting the plan to shut down Pohang Plant 2. November 15, 2024. Yonhap News Agency

The company initially planned to completely shut down the underutilized Pohang Plant 2 but, through labor-management negotiations, switched from the existing four-shift, two-team system to a two-shift, two-team system. Pohang Plant 2 mainly produces shaped steel products used at construction sites.

Hyundai Steel is facing management difficulties due to the domestic construction market downturn and oversupply of low-priced products from China. While accepting voluntary retirements at the Pohang plant, Hyundai Steel is also recruiting personnel for 'reassignment' to work at the thin steel sheet plant in Dangjin Steelworks, Chungnam. Earlier, Hyundai Steel had prepared to switch the Dangjin plant from producing thin steel sheets to a low-carbon process due to profitability deterioration in 2020.

A Hyundai Steel official stated, "We aim to efficiently allocate personnel through voluntary retirement and reassignment," adding, "Since voluntary retirement is optional, there may be cases where no applications are submitted. We may consider extending the application period later."

This content was produced with the assistance of AI translation services.