Hyundai Heavy Industries Labor-Management Negotiation Settled at 64.63%

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Heavy Industries labor and management have concluded the two-year wage and collective bargaining negotiations for 2019 and 2020.

The Hyundai Heavy Industries Labor Union announced on the 16th that the third tentative agreement was approved with a 64.63% approval rate in the ratification vote.

The tentative agreement includes a base salary increase of 46,000 KRW in 2019, a base salary increase of 51,000 KRW in 2020, payment of annual performance bonuses and incentive bonuses, welfare points, and gift certificates. The company estimates that each employee will receive an average of about 18 million KRW from this settlement.

The labor and management held an introductory meeting on May 2, 2019, and began wage negotiations, but the negotiations showed signs of prolongation as labor and management clashed over the corporate split for the acquisition of Daewoo Shipbuilding & Marine Engineering at that time.

The conflict continued as the union fought against the split, and the management responded with disciplinary actions against strike participants and damage compensation lawsuits. After long negotiations, the first tentative agreement was prepared on February 5 this year, and the second on April 2, but both were rejected in member votes.

Subsequently, after the union carried out a full strike and crane occupation sit-in protest, the management and union reached the third tentative agreement on the 13th, focusing on base salary increases. With the approval of this tentative agreement in the member vote that day, the negotiations that had dragged on for three years came to an end.

Labor and management plan to hold the signing ceremony for the 2019 and 2020 wage and collective bargaining agreements next week.