Wages Withheld Until Strike Ends
Disagreement Over Performance Bonus Remains Unresolved
General Strike vs. Lockout: Labor-Management Relations Worsen
Hyundai Steel has implemented a partial 'lockout' on some lines of the cold rolling mill at its Dangjin Steelworks in response to a labor union strike. A lockout refers to a situation where the employer temporarily expels workers from the workplace and withholds wages to counter labor disputes. As wage and collective bargaining agreement (CBA) negotiations between labor and management have stalled for five months, and the union has resorted to guerrilla-style strikes, the company is responding with its first-ever partial lockout since its establishment.
On the 24th, Hyundai Steel issued a notice under the name of the CEO stating, "From noon on the 24th, a partial lockout will be implemented on the pickling and rolling equipment (PL/TCM) lines of Cold Rolling Mills 1 and 2 at the Dangjin Steelworks." The pickling and rolling equipment is used to remove surface impurities from hot-rolled steel sheets, which are the raw material for cold-rolled steel sheets. If this line stops, the subsequent processes that actually produce cold-rolled steel sheets will effectively become inoperable. Hyundai Steel explained in the notice, "Due to the union strike starting February 1, normal production activities have become impossible, causing significant disruption, and thus, we are compelled to implement a lockout in accordance with the law."
Earlier, the Hyundai Steel union conducted strikes at the Dangjin Steelworks cold rolling mill on January 21 and 22. On the 2nd, partial strikes were held on some lines at the Dangjin and Incheon plants, and on the 11th, the union even carried out a "24-hour general strike." The company explained that these repeated partial and temporary strikes have made it difficult to finalize the overall production schedule. The company announced that, citing disruptions to operational stability, it decided on a defensive lockout of the pickling and rolling equipment to minimize economic losses and ensure workplace safety.
Hyundai Steel union members held an outdoor protest near the residence of Chung Eui-sun, Chairman of Hyundai Motor Group, located in Hannam-dong, Yongsan-gu, Seoul, on the 21st. Photo by Hyundai Steel
According to the Labor Union and Labor Relations Adjustment Act, an employer may implement a lockout after the union initiates a strike. The lockout continues until the strike ends, and wages do not have to be paid during the lockout period. Hyundai Steel claims that from the 1st to the 22nd, approximately 270,000 tons of production loss occurred in the cold rolling sector due to labor disputes, estimating the loss at around 25.4 billion KRW.
Hyundai Steel labor and management have been negotiating the CBA for nearly five months since their initial meeting in September last year but have failed to reach an agreement. Hyundai Steel proposed a wage increase of 100,000 KRW in base pay plus a performance bonus of "450% of base pay + 10 million KRW," but the union opposed this and the proposal fell through. The union is demanding a proposal from the parent company, Hyundai Motor Group, of "500% of base pay + 18 million KRW."
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