20% Executive Salary Cut
Voluntary Retirement "Under Consideration"
Hyundai Steel is entering an emergency management system with extraordinary measures amid domestic and international crises.
Amid the union's strike actions, Hyundai Steel has implemented a partial workplace closure on some lines of the cold rolling mill at the Dangjin Steelworks. The interior of the cold rolling mill was seen completely empty on the 24th of last month. Photo by Yonhap News
On the 14th, Hyundai Steel announced that it would enter an emergency management system, judging that management improvement would be difficult without strong self-help measures amid the recent severe domestic and international crisis situations.
The company decided to cut the salaries of all executives by 20% and also plans to implement cost-saving measures such as minimizing overseas business trips.
In addition, it plans to pursue extreme cost-cutting measures in various ways, including considering accepting voluntary retirement applications from all employees. Due to the deterioration of the domestic construction market, Hyundai Steel recently reduced the operation of its Pohang Plant 2 and is accepting voluntary retirement applications from technical staff at the Pohang Plant as well as transfer placement requests for Dangjin Steelworks and Incheon Plant.
Meanwhile, the domestic steel industry is losing competitiveness due to overseas low-price offensives and the U.S. protectionist policies. Hyundai Steel recently filed anti-dumping complaints against low-priced steel products from China and Japan, judging that they are eroding the domestic market share for thick plates and hot-rolled products.
Amid these crises, Hyundai Steel has also been facing difficulties in wage negotiations with the labor union that have continued since September last year.
The company proposed a performance bonus payment plan averaging 26.5 million KRW per person to the union, but the union rejected it and continued the strike, demanding additional performance bonuses. Hyundai Steel and the labor union resumed negotiations yesterday but failed to reach an agreement, resulting in a breakdown of talks.
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