HD Hyundai Heavy Industries Union Rejects Company's First Proposal: "Falls Far Short of Expectations"

Partial Strike Proceeding as Planned

The HD Hyundai Heavy Industries union rejected the company's first proposal regarding this year's wages and collective bargaining agreement.

On the 5th, during negotiations held at the Ulsan headquarters, HD Hyundai Heavy Industries proposed a base salary increase of 102,000 KRW (including a seniority raise of 35,000 KRW), a 4 million KRW encouragement bonus, performance bonuses, and an expansion of the age range eligible for comprehensive health checkups. The company also suggested a 2 billion KRW contribution for operating recreational facilities, the establishment of a special labor-management council to improve personnel systems, and an extension of the number of days counted as overtime for work during summer vacation periods.

However, the HD Hyundai Heavy Industries union rejected the company's proposal, calling it a "ridiculous offer that falls far short of the members' expectations," and the negotiations broke down. The union stated, "It has been 128 days since we sent our collective bargaining demands, and although this is the first proposal from the company, it is a disappointing offer that falls far short of our expectations and is not worth discussing." They added, "(The company) has suppressed wages by freezing or minimally increasing them during downturns and argued that during prosperous times, they must prepare for difficult periods."

An HD Hyundai Heavy Industries representative said, "Considering both internal and external management environments, we carefully prepared this proposal, and we regret that the union did not accept it. We hope to engage in further sincere negotiations and conclude the process promptly."

The HD Hyundai Heavy Industries union went on a 4-hour strike on the 4th due to difficulties in this year's wage negotiations. The photo shows union members participating in the Shipbuilding Industry Union Solidarity (Joseon Noyeon) rally held in front of the main gate of the Ulsan headquarters that afternoon. Photo by HD Hyundai Heavy Industries union.

Since the initial meeting on June 4, the labor and management have continued negotiations but have not achieved significant results. After the June introductory meeting, HD Hyundai Heavy Industries labor and management held main negotiations twice a week and working-level negotiations once a week. Following a request from the union, from the first week of this month, main negotiations have been held three times a week, with additional negotiations as needed.

Following the rejection of the company's proposal, the union will continue the strike it had previously announced.

The HD Hyundai Heavy Industries union has formed the Shipbuilding Industry Union Solidarity (Joseon Noyeon) together with seven domestic shipbuilders and the Korean Metal Workers' Union nationwide, and they are conducting joint strikes.

Joseon Noyeon announced four additional strikes before Chuseok, following strikes on the 28th of last month and the 4th of this month. They plan a 3-hour partial strike on the 6th, a 7-hour partial strike on the 9th, and 4-hour partial strikes on the 10th and 11th. The strike on the 9th will mainly take place in Geoje, Gyeongnam, led by the Daewoo Shipbuilding branch (Hanwha Ocean), and strike guidelines have been issued to union members wishing to participate.

The Samsung Heavy Industries Workers' Council (equivalent to a union), which has been maintaining a tent sit-in for 19 days, had planned a partial strike on the 4th but postponed it as the company decided to present a new proposal this week.