HD Hyundai Heavy Industries Labor and Management Reach Second Tentative Agreement; Lump-Sum Payment Increased by 500,000 Won

120,000-Won Increase in Base Pay; 11.5 Million Won Plus 200% in Lump-Sum Payments
Special Agreement on Industrial Transition to Ensure Job Security
Final Approval to Be Decided in Union Member Vote on October 27

HD Hyundai Heavy Industries' labor and management have reached a second tentative agreement in this year's wage and collective bargaining negotiations. The agreement was reached 21 days after the first tentative agreement was rejected in a union member vote, with the lump-sum payment increased by 500,000 won from the previous offer.

A view of HD Hyundai Heavy Industries. Yonhap News Agency

According to HD Hyundai Heavy Industries on October 23, labor and management reached a second tentative agreement during the 26th round of negotiations held that day at the company's headquarters in Ulsan. The agreement calls for a 120,000-won increase in base pay, including a 55,000-won seniority-based raise, and lump-sum payments of 11.5 million won plus 200%, including an encouragement payment.

Compared with the first tentative agreement reached on September 30, the total base pay increase remains unchanged, while the lump-sum payment has risen from 11 million won to 11.5 million won. The seniority-based raise included in the base pay increase was also adjusted from 50,000 won to 55,000 won.

The collective agreement and rules of employment will be unified under HD Hyundai Heavy Industries' standards, while some terms more favorable to union members, including 14 days of consolation leave upon retirement for employees of the former HD Hyundai Mipo, will be incorporated. Severance pay will be calculated based on three consecutive months selected by the employee from the four months immediately preceding the date the reason for payment arises. Employees will also receive 300,000 welfare points.

The agreement also includes a special agreement on industrial transition to address employment changes resulting from automation and digitalization in the shipbuilding industry. The company agreed to explain in advance any developments that could affect employment and to discuss measures to ensure job security through a joint labor-management council.

Following the tentative agreement, Kim Dongha, head of the union branch, ended his sit-in atop a crane at the company on October 23, after five days. The union held 11 partial strikes during negotiations and, since October 19, had staged partial strikes involving all union members for seven hours a day.

The union plans to hold a vote among all members on October 27 to decide whether to accept the tentative agreement. In the vote on the first tentative agreement held on October 2, 52.14% of voters opposed it, resulting in its rejection.

A HD Hyundai Heavy Industries official said, "As labor and management have reached another tentative agreement through negotiations, we hope this agreement will lead to an amicable settlement."

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