Company Appeals Through Newsletter
Hyundai Steel, which is currently engaged in wage negotiations with its labor union, emphasized the need for negotiations that take management conditions into account, stating, "Demanding compensation that ignores reality is an act of creating a crisis for ourselves." The company began urging the union to consider the difficulties facing the steel industry after the union rejected its initial wage proposal.
According to industry sources on October 17, Hyundai Steel's labor affairs team recently distributed a newsletter containing this message to union members. Hyundai Steel stated, "Such demands could invite criticism and backlash not only from external organizations but also from society as a whole, and could negatively impact our company's trust and image," adding, "We have proposed the maximum amount available as a performance bonus."
Earlier this month, Hyundai Steel proposed raising the base salary by 65,000 won and offering a management performance bonus consisting of 100% of the base salary plus an additional 2 million won. However, the union rejected the offer, leading to a breakdown in negotiations. Labor and management have continued to hold talks every Thursday since August.
The company explained external management factors by dividing them into three categories: the government, the National Assembly, and stakeholders. On the government side, measures are underway such as designating Pohang and Dangjin as industrial crisis response areas, requesting reductions in electricity rates, and promoting plans to advance the steel industry. In the National Assembly, the "K-Steel Act for Reviving Steel Industry Competitiveness" has been proposed. Regarding stakeholders, the company noted that while there is ongoing pressure to reduce debt, additional borrowing is inevitable.
Previously, last year, Hyundai Steel and its union only managed to conclude wage and collective bargaining negotiations in April of this year after a prolonged deadlock. The agreement at that time included a wage increase of 101,000 won and a performance bonus amounting to 450% of the base salary plus an additional 10.5 million won.
Meanwhile, Hyundai Steel is experiencing poor performance due to a slowdown in global demand and the burden of high steel tariffs imposed by the United States. In the first half of this year, sales reached 1.1509 trillion won, down 4% from the previous year, while operating profit dropped sharply by 46% to 82.7 billion won.
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