Hyundai Heavy Industries, Two Years of Wage and Labor Negotiations Rejected... "Failed to Meet Union Members' Expectations"

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[Asia Economy Reporter Kang Nahum] The tentative agreement on wages and collective bargaining for 2019 and 2020, prepared by the labor and management of Hyundai Heavy Industries, was rejected in a union member vote.

On the 5th, the Hyundai Heavy Industries labor union announced that in the vote on the tentative agreement conducted among all union members (7,419 people), 4,037 out of 6,952 voters (voter turnout 93.7%) opposed it, resulting in failure to pass.

The tentative agreement included a 46,000 KRW wage increase for 2019 (including a 23,000 KRW seniority increment), a performance bonus of 218%, an encouragement bonus of 100% + 1.5 million KRW, and welfare points of 300,000 KRW.

Regarding the 2020 wage and collective agreement, it included a freeze on the base salary (a fixed increase of 23,000 KRW for seniority), a performance bonus of 131%, a labor-management harmony encouragement bonus of 2.3 million KRW, and local economy gift certificates worth 300,000 KRW.

Due to the rejection on this day, labor and management must enter renegotiations. A union official said, "It seems the tentative agreement did not meet the expectations of union members regarding wages and installment issues," adding, "We will discuss the future direction."

In the simultaneous vote held on the same day, the group companies Hyundai Electric (56.2% approval) and Hyundai Construction Equipment (51.4% approval) passed the tentative agreement in their union member votes. However, since the three companies operate under a single union system, the wage and collective agreement at Hyundai Heavy Industries must be finalized for the agreements at the other companies to take effect.

This content was produced with the assistance of AI translation services.