Hyundai Steel Signs First Parent-Subcontractor Collective Bargaining Agreement Since Revised Labor Union Act Enacted

The first case has emerged in which both the parent company and its subcontractors have signed a collective bargaining agreement through negotiations following the enforcement of the revised Labor Union Act.

On September 10, the Ministry of Employment and Labor announced that Hyundai Steel and the labor unions of four subsidiary companies signed the "2026 Parent-Subcontractor Negotiation Agreement" at Hyundai Steel's Dangjin plant and concluded a joint collective bargaining agreement between the parent and subcontractor labor unions. This marks the first time since the implementation of the revised Labor Union Act on March 10 that negotiations between a parent company and its subcontractors have led to the signing of an actual collective bargaining agreement.

Four subsidiaries participated in these negotiations: Hyundai ITC (Dangjin), Hyundai IEC (Suncheon), Hyundai IMC (Pohang), and Hyundai ISC (Incheon). Hyundai Steel had conducted separate negotiations per collective bargaining unit, in accordance with the National Labor Relations Commission's decision to separate bargaining units.

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The parent-subsidiary negotiations between Hyundai Steel and the labor unions of the four subsidiaries were held four times in total, beginning with an inaugural meeting on August 20. For industrial safety agendas, where Hyundai Steel's status as an employer was recognized through the Labor Relations Commission, the subsidiaries also participated in the discussions.

The labor and management parties ultimately agreed to continuously improve the subsidiaries' industrial safety and health management systems and to establish a medium- to long-term roadmap to elevate the level of industrial safety and health.

The Cheonan branch of the Ministry of Employment and Labor played a mediating role during the negotiation process, supporting practical consultations and presiding over tripartite meetings to help bridge the differences between labor and management.

Minister of Employment and Labor Kim Younghoon stated, "This is the first example in which the purpose of the revised Labor Union Act—to promote dialogue and coexistence between parent companies and subcontractors—has been implemented on the ground," adding, "It is a meaningful milestone that will help make Hyundai Steel’s workplaces safer through dialogue between parent and subcontractor labor unions."

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