HD Hyundai Heavy finally ends wage and bargaining negotiations
The second tentative agreement, which increases basic salary, incentives and bonuses from the first, was passed by a majority, although it falls short of the union’s initial demands
For the third year in a row, the shipbuilder has succeeded in concluding negotiations within the year, as it seeks to translate the shipbuilding boom into better business results
SOUTH Korea’s HD Hyundai Heavy Industries and its union have ended their wage negotiations after the vote on the second tentative agreement was passed by a majority, following the earlier conclusion of talks by its competitors Samsung Heavy Industries and Hanwha Ocean.
HD HHI announced that out of 6,656 voters, 3,664 (59.2%) voted in favour of the deal, while 2,484 (40.1%) voted against.
The first agreement was defeated in a union ballot on November 8, when 3,658 (59.7%) voted against it. At the time, the union said the proposal did not reflect the wishes of members.
The second agreement includes a basic wage increase of Won130,000 ($92), a bonus of Won4.7m and a bonus of Won500,000, representing increases of Won1,000, Won200,000 and Won200,000 respectively over the first proposal.
Despite the improved conditions, the revised agreement fell short of the union’s original demand for a wage increase of Won159,800.
In a statement, the union said: “We deeply regret that the wage negotiations did not fully meet members’ expectations, but we will make up for this in the next round of negotiations.”
Had the second proposal failed again, it is almost certain that the 2024 talks would have come close to being approved in 2025, as union representatives and company executives could have changed before the end of the year.
From 2005 to 2021, wage and collective bargaining negotiations were concluded one year after the corresponding year. By accepting the second tentative agreement, HD HHI managed to conclude negotiations within the year for three subsequent years, followed by 2022 and 2023.
Before reaching the second agreement, management and the union had held 32 rounds of wage talks since May and workers conducted 24 partial walkouts since August.
In a statement, an HD HHI official said: “We believe that the union and the members are well aware and have decided that now is the time of a perfect opportunity to revive shipbuilding, such as an increase in incoming orders.
“With the conclusion of the wage negotiations, we will accelerate the improvement of performance together with the entire workforce”.
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