HD Hyundai Heavy first among South Korean builders to secure tentative wage deal
Management and union of HD Hyundai Heavy Industries have reached a tentative wage agreement, pending a vote by union members
Most other shipbuilders have not yet submitted their proposals, and their unions are planning a joint strike in late August
SOUTH Korea’s HD Hyundai Heavy Industries and its union have reached a tentative agreement on a basic salary increase and other benefits during their 2025 wage negotiations.
The deal was reached almost two months after negotiations started on May 20. A previous proposal from the management was rejected.
If a majority of union members approve the deal in a vote scheduled for July 22, this year’s wage and bargaining negotiations will be finalised.
The agreement includes a basic wage increase of Won133,000 ($95), a Won5.2m incentive bonus, as well as additional special incentives and performance-based payments.
The basic salary increase is Won3,000 higher than last year’s Won130,000 increase. According to HD Hyundai, HD HHI’s parent, the average total variable payment per union member, including incentives and bonuses, will be about Won27m — the highest ever for the company.
HD Hyundai said the two sides now have a chance to conclude negotiations before the summer holidays. “We hope the agreement will be finalised soon, serving as a meaningful step toward building trusting and harmonious labour-management relations,” it added.
Prior to the agreement, the union held four partial strikes, including a joint walkout with the Shipbuilders’ Labour Solidarity on July 18.
The solidarity group comprises unions from eight key South Korean shipbuilders: HD Hyundai Heavy Industries, HD Hyundai Mipo, HD Hyundai Samho, Samsung Heavy Industries, Hanwha Ocean, K Shipbuilding, HSG Sungdong Shipbuilding and HJ Shipbuilding & Construction.
The joint strike included participation from HD Hyundai Mipo, HD Hyundai Samho and Hanwha Ocean. The rest are still in the process of securing legal approval for strike action.
A solidarity official said that so far only HD HHI and Hanwha Ocean had submitted proposals, but the latter’s offer was immediately rejected by its union.
They added, “We are considering a second joint strike at the end of August, after the summer holidays. If HD Hyundai’s tentative agreement is approved, its union will not join the strike.”
