Samsung Heavy Industries Becomes First of Big Three to Reach Wage Agreement... Basic Pay Up KRW 131,786

Increase Rate Set at 5.2%

Samsung Heavy Industries' labor and management have reached an agreement in this year's wage negotiations, covering basic pay increases, encouragement bonuses, and changes to the calculation criteria for performance bonuses. This makes Samsung Heavy Industries the first among Korea's “Big Three” shipbuilders to reach such an agreement this year.

A 266,200 CBM-class ultra-large liquefied natural gas (LNG) carrier built by Samsung Heavy Industries. Samsung Heavy Industries

On September 23, Samsung Heavy Industries announced that the tentative agreement reached between labor and management was approved by 58.78% of union members in a vote. The basic salary will rise by KRW 131,786 in total, including regular promotion increments, which constitutes a 5.2% increase.

The encouragement bonuses include a wage settlement bonus of KRW 2 million, a labor-management harmony bonus of KRW 3 million, and a future competitiveness enhancement bonus of KRW 2 million, for a total of KRW 7 million. For performance bonuses, the source of the excess profit performance bonus (OPI) has changed from “20% of economic value added (EVA)” to “10% of operating profit.”

Meanwhile, wage and bonus negotiations at HD Hyundai Heavy Industries and Hanwha Ocean are reportedly at a standstill. Differences between labor and management on wages and performance bonuses at both companies remain unresolved, resulting in prolonged conflicts.

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