Hyundai Heavy Industries' 2024 Wage and Collective Bargaining Agreement Settled Without Disputes for the First Time in 9 Years

Expecting a Turning Point for Labor-Management Harmony

Photo by Hyundai Heavy Industries Union Provided

[Asia Economy Reporter Choi Seoyoon] Hyundai Heavy Industries labor and management finalized this year's wage and collective agreement on the 15th.

Hyundai Heavy Industries announced that the second tentative agreement on the '2022 Wage and Collective Agreement' was approved with 57.47% in favor at the labor union (Metalworkers' Union Hyundai Heavy Industries Branch) general assembly held that day.

At the general assembly, 6,179 out of 6,660 union members, accounting for 92.78%, participated in the vote, with 57.47% (3,551) in favor, 42.18% (2,606) opposed, and 0.36% (22) invalid votes, passing the tentative agreement.

The main points of the agreement include ▲an 80,000 KRW increase in base pay (including seniority increments) ▲a 20,000 KRW increase in regional and welfare allowances ▲a 3.5 million KRW encouragement bonus ▲a 500,000 KRW gift certificate, etc. It also includes expanded medical benefits such as annual dental prosthesis support of 500,000 KRW and 100% coverage of spouse comprehensive health checkup costs.

Hyundai Heavy Industries labor and management held their first negotiation meeting in July this year and prepared the first tentative agreement five months later on the 6th. However, at the union members' general assembly held on the 8th, although the approval rate was 49.94%, slightly higher than the opposition at 49.69%, it failed as it did not exceed half.

To conclude within the year, labor and management immediately resumed negotiations and succeeded in preparing the second tentative agreement on the 13th, five days after the rejection. With the approval of the tentative agreement at the second union general assembly, Hyundai Heavy Industries labor and management concluded collective bargaining without disputes for the first time in nine years since 2013.

A Hyundai Heavy Industries official said, “To mark the company's 50th anniversary, we actively communicated to establish a turning point in labor-management relations, resulting in the conclusion of negotiations without carrying over to the next year,” and added, “With the settlement of negotiations, all employees will unite their hearts and vigorously move forward toward becoming a 100-year company.”

Meanwhile, Hyundai Electric, which held a union general assembly on the same day, also approved the second tentative agreement with a 69% approval rate. Hyundai Construction Equipment had already approved the tentative agreement at the general assembly on the 8th, so all three companies have completed collective bargaining. Hyundai Heavy Industries labor and management plan to hold the ‘2022 Collective Bargaining Signing Ceremony’ next week.

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