Hyundai Heavy Industries 3rd Tentative Agreement on Labor-Management Negotiations... Basic Salary Increased by 41,000 Won

The Hyundai Heavy Industries labor union is counting the votes of union members for the approval or disapproval of the second tentative agreement on the 2019 and 2020 wage and collective bargaining negotiations at the Ulsan headquarters gymnasium on April 2. [Image source=Yonhap News]

[Asia Economy Reporter Park Jun-yi] Hyundai Heavy Industries labor and management have reached a third tentative agreement on the 2019 and 2020 wage and collective bargaining agreement. The tentative agreement includes a basic salary increase.

The labor and management parties reached a tentative agreement on the two-year wage and collective agreement at the 10th integrated main negotiation held at the Ulsan headquarters on the 13th. This agreement was reached 102 days after the second tentative agreement was rejected in a union member vote on April 2.

The third tentative agreement includes a basic salary increase of 41,000 KRW (including step increase) for last year.

The contents of the previous tentative agreement included a 46,000 KRW basic salary increase (including step increase) in 2019, a freeze on the basic salary in 2020, payment of performance bonuses, encouragement bonuses, a separate special encouragement bonus of 2 million KRW, and withdrawal of various lawsuits between labor and management arising from the physical division (corporate split) process.

The union members' vote on the third tentative agreement is expected to be held within this week. If approved, the Hyundai Heavy Industries wage and collective agreement will be concluded after about 2 years and 2 months since the negotiations began.

Since the initial meeting on May 2, 2019, labor and management have been in conflict over the corporate split shareholders' meeting. During this process, negotiations have been difficult due to union occupation of the shareholders' meeting hall and strikes, as well as disciplinary actions by management.

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