HD Hyundai Heavy Industry union begins the process of going on strike
After eleven rounds of wage and bargaining negotiations, the company and labour unions have failed to reach an agreement
The union plans to hold a strike ballot. If a majority vote in favour, the union will be legally entitled to strike, subject to coordination by the National Labour Relations Commission
THE union representing workers at South Korea’s HD Hyundai Heavy Industries has announced that it will hold a strike ballot for all members from July 2-4.
The move comes after 11 rounds of negotiations between HD HHI’s labour and management over the past month, beginning with the first meeting on May 30. However, they have been unable to reach an agreement.
In light of the situation, the union filed for mediation of the dispute with the National Labour Relations Commission on June 27.
If the majority agrees with the union and the NLRC decides to suspend mediation based on the finding that there are significant differences of opinion between the union and management, the union will have the legal right to strike.
The union’s demands include an increase in the basic salary of Won141,300 ($104), an extension of the retirement age, the hiring of new workers and an expansion of welfare benefits.
“We communicated our demands to the company two months ago, and we have held 11 rounds of negotiations since then,” the union said. “However, no progress has been made, so we have filed for conciliation.”
The union’s decision to take a hard line comes alongside the shipbuilder’s recent strong financial performance.
HD HHI posted sales of Won14.4trn and an operating profit of Won705.2bn in 2024. This represents an increase of 21.1% in sales and 294.8% in operating profit compared with 2023.
In the first quarter of this year, the South Korean shipbuilder recorded sales of Won3.8trn and operating profit of Won433.7bn.
In response to the union’s request to extend the retirement age, the company stated that government policy on the matter had not yet been finalised, and that it was impossible to specify the number of new hires due to the variability of workforce management.
“It is time to reward members for their patience during difficult times,” the union said. “The company should improve staff morale by rewarding achievements and distributing profits fairly.”
The 12th round of negotiations between the union and management will take place on July 2.
Before concluding the 2024 wage negotiations last November, management and the union held more than 30 rounds of wage talks, and the union held a total of 24 partial walkouts.
